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 …

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 …

complementarity in firms' wage setting and workers' job search strategies. Strategic complementarity results in a continuum of … possible equilibria with higher-wage equilibria welfare dominating lower-wage equilibria. Assuming that no economic agent …

This paper reexamines wage and price dynamics in response to permanent shocks to productivity. We estimate a micro … technology and monetary policy shocks. We utilize a flexible specification for wage- and price-setting that allows for the … wage and price inflation. On the price front, we find that in our VAR inflation jumps in response to an identified …

transitions between labor status or jobs, whereas for those at the top, earnings changes are mainly induced by wage rate growth …

, 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 …

The canonical supply-demand model of the wage returns to skill has been extremely influential; however, it has faced …