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 …

occasionally renegotiated. We argue that one source of the wage flexibility puzzles is plausibly the model for the determination of … reservation wages, and consider an alternative reservation wage model based on reference dependence in job search. This extension …

Nominal wage stickiness is an important component of recent medium-scale structural macroeconomic models, but to date … there has been little microeconomic evidence supporting the assumption of sluggish nominal wage adjustment. We present … evidence on the frequency of nominal wage adjustment using data from the Survey of Income and Program Participation (SIPP) for …

RBC models with search unemployment and wage renegotiation generate too much wage volatility and too stable … actual economies by imposing full real wage rigidity. We use a similar model but with Calvo wage contracts and we obtain a … microfounded equation of real wage rigidities. The models with full wage flexibility or full wage rigidity are obtained as …

The aggregate average wage is often used as an indicator of economic performance and welfare, and as such often serves … as a benchmark for changes in the generosity of public transfers and for wage negotiations. Yet if economies experience a … and the end of 2002. We show that about a quarter of the growth in the average wage during this period could be attributed …

exceeded, and eventually real wage growth began to accumulate for workers across the distribution. In fact, the business cycle … (including recession and recovery) beginning in December 2007 was one of the better periods of real wage growth in many decades …