A model's ability to explain procyclical movements in real wages has become an important benchmark by which … macroeconomists judge business cycle theories. Because Keynesian models with sticky nominal wages predict countercyclical real wages … stickiness or countercyclical markups. The bulk of the evidence for procyclical real wages, however, comes from studies using …

There is a growing consensus among economists that real wages in the postwar U.S. have been moderately to strongly … previous estimates of wage cyclicality. In two-digit and four-digit level (SIC) industry data on wages, with controls for … changes in worker composition, I find that a substantial majority of sectors have paid real product wages that vary inversely …