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We extend the canonical income process with persistent and transitory risk to shock distributions with left-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household data from the United States. We find countercyclical...
Persistent link: https://www.econbiz.de/10012215285
We document substantial cross-sectional heterogeneity of German establishments’ real wage cyclicality over the business … wages. We estimate a negative connection between establishments’ wage cyclicality and their employment cyclicality, thereby …
Persistent link: https://www.econbiz.de/10013212779
This paper studies the impact of downward wage rigidity on wage and employment dynamics after the outbreak of major … recessions in Spain. Downward wage rigidity stems from collective agreements, which set province-sector-skill specific minimum … wage floors for all workers. By exploiting variation in the renewal of collective contracts, we find that agreements signed …
Persistent link: https://www.econbiz.de/10014566234
We analyse the implications of habit formation relating to wages in a multi-period efficiency-wage model. If employees …. Greater intensity does not necessarily have the same consequences, because wage adjustments counteract the initial level … impact. The firm's response additionally depends on the wage-dependency of dismissal costs since such costs make an …
Persistent link: https://www.econbiz.de/10012828115
Persistent link: https://www.econbiz.de/10013428556
We study the welfare performance of various simple monetary policy rules under bounded rationality (BR) along the lines of Gabaix (2020) in a New Keynesian model with sticky wages and an effective lower bound (ELB) on interest rates. Policy strategies with a strong history dependence lose their...
Persistent link: https://www.econbiz.de/10014320809
We present a new and simple empirical methodology to identify relative wage rigidity dynamics. The methodology is … relative wage and unemployment differentials for various labour market defining characteristics. A simultaneous increase in the … relative wage and the unemployment likelihood is defined as a relative wage rigidity dynamic for a labour market characteristic …
Persistent link: https://www.econbiz.de/10013428349
transitions between labor status or jobs, whereas for those at the top, earnings changes are mainly induced by wage rate growth …
Persistent link: https://www.econbiz.de/10013224084
, search for employers, and residual wage shocks to account for these life cycle wage dynamics. We highlight the importance of … largest part of life cycle wage dynamics. It accounts for 50% of average wage growth, 50% of rising differences between gender …
Persistent link: https://www.econbiz.de/10012897647
reallocate mostly to low capital-intensive firms, experiencing persistent wage losses. …
Persistent link: https://www.econbiz.de/10014440036