modification substantially lowers the effective stickiness of nominal wages, resulting in markedly different wage and inflation …Heterogeneous-agent New Keynesian models with sticky nominal wages usually assume that wage-setting unions demand the …, wages and inflation to monetary policy shocks becomes notably less pronounced. This attenuation reflects that hours worked …

Discontinuities in the employment profile are supposed to cause wage cuts since they imply an interruption in the … significant wage cuts owing to the depreciation of human capital. Postponing the discontinuity leads to a further fall of the wage … depreciation rates. This we interpret as an indication for segregation in the labor market. We conclude that traditional wage …

experiences of these macroeconomic outcomes they have made during life. Focusing on expectations about national inflation …