wages are rigid. We explore whether this explanation is consistent with the data. We show that the wage of newly hired … workers, unlike the aggregate wage, is volatile and responds one-to-one to changes in labor productivity. In order to … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …

. We show that firms were able to respond to the Great Recession with substantial real wage cuts and by recruiting more …

, the government faces recruitment problems. The optimal steady-state wage premium depends mainly on the labour market … the optimal policy can increase the volatility of unemployment significantly. Public sector wage and employment shocks … have mixed effects on unemployment. A wage shock raises the unemployment rate, while a reduction in the separations lowers …

all workers, a wage-productivity elasticity of 1.2, slightly above the one-for-one response predicted by the Mortensen …

wage practices. We propose a simpler and more relevant approach ﾖ use matched employer/employee longitudinal data to … unemployment rate is one percentage point lower. Like most recent evidence on other aspects of wage cyclicality, our results …

This paper presents evidence that real wage cyclicality can be a particularly heterogeneous parameter, depending on …

can commit to wage contracts but cannot commit not to replace incumbent workers. Workers are risk averse, so that there …

There is considerable debate about the role of wage rigidity in explaining unemployment. Despite a large body of … empirical work, no consensus has emerged on the extent of wage rigidity. Previous attempts to empirically examine wage rigidity … have been hampered by small samples and measurement error. In this paper we examine nominal wage flexibility in Ireland …