We show that U.S. manufacturing wages during the Great Depression were importantly determined by forces on firms …

, we employ frequency domain methods that allow us decompose wages into cyclical components and to assess the relative … contribution of each component. These are discussed in relation to wages alone (the univariate case) and to wages in relation to … of coherency between wage and business cycles is time dependent. We establish that real wages are strongly procyclical …

We show in this paper that important insights into the cyclical behaviour of wages can be gained by dividing (real … recursive estimation and testing methods. While the wage rate is generally acyclical and unstable, the other two components are …