elasticities derived from microeconometric models can also be explained by modeling assumptions with respect to wages. Specifically … very sensitive to the treatment of wages. In particular, the often-made but highly restrictive independence assumption … between preferences and wages is key. To overcome this restriction, we propose a flexible estimation strategy that nests …

or paid wages are subject to an unanticipated temporary change, we can derive an analytical expression for the aggregate … extensive adjustment of wages, and (iii) the aggregate employment rate. We use individual-specific data from the German Socio …-employed workers' reservation wages. We use this variable in conjunction with a twostep conditional density estimator to retrieve the …

comes from their own actions instead of being determined by luck or destiny, earn higher wages. However, this positive …