We introduce dynamic incentive contracts into a model of unemployment dynamics and present three results. First, wage …-order equivalent in an economy with flexible incentive pay and without bargaining, vis-a-vis an economy with rigid wages. Second, wage …% of wage cyclicality in the data arises from incentives. A standard model without incentives calibrated to weakly …

of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working … persistently affected, but the penalty on the hourly wage (and earnings) increases with experience, and attains roughly -6% ten …

model that is able to replicate these facts and thereby allows us to run counterfactual exercises. When we set the wage …

SILC panels to control for composition effects, we estimate the elasticities of real wage growth to unemployment increases … most of the stagnation or increase in the average wage observed in some countries from 2008 to 2011. In contrast, at a … nominal wage rigidity during the Great recession in most countries in our sample. …

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 …

composition of the labor force, between-groups wage inequality and the level of unemployment. The main result is that a labor … market with wage rigidities may not recover from such a temporary labor supply shock: with a younger and less experienced … even after the shock. In a competitive market, in contrast, wage inequality and notably, the wage return to experience …

We present new evidence on the wage and mobility of young and old workers, which is difficult to explain using standard … factor driving the lower mobility among this group. Because of the higher moving costs, older workers require a higher wage …

We investigate the impact of a substantial minimum wage increase, which became effective in January 2016, on consumer … by banks with a historically high share of low-wage loan customers have increased relative to those provided by banks … with a historically low share of low-wage loan customers after January 2016. Our results suggest that consumer loan flows …