This paper provides a model that can account for the almost uniform staggering of wage contracts in some countries as … ; strategic substitutability ; wage contracts ; contract duration …

Empirical and institutional evidence finds considerable time variation in the degree of wage indexation to past … build a DSGE model with endogenous wage indexation in which utility maximizing workers select a wage indexation rule in … aggregate demand shocks dominate output fluctuations. The model's equilibrium wage setting can explain the time variation in …

Membership in a monetary union implies stronger incentives for nominal wage flexibility in the form of wage indexation …-indexation to an indexation equilibrium. But more wage flexibility is only an imperfect substitute for an own monetary policy. It is … possible that an increase in wage flexibility is welfare-decreasing because of the accompanying rise in price variability. The …

We find that oil supply shocks decrease average real wages, particularly skilled wages, and increase wage dispersion … across regions, particularly unskilled wage dispersion. In a model with spatial energy intensity differences and nontradables … for the response of wage dispersion. Only an additional response in labor supply can explain this latter fact highlighting …