-sectional heterogeneity of establishments' average real wages over the business cycle. While the median establishments' real wages are … procyclical, there is a large fraction of establishments with countercyclical real wages. We are the first to show that … establishments with more procyclical wages have a less procyclical hires rate and employment behavior. We propose a labor market flow …

In this paper, we analyze the connection between value added, wages, and labor market flows at the establishment level … the new German Administrative Wage and Labor Market Flow Panel (AWFP) dataset to the IAB Establishment Panel. We show that … establishments' hires rates have a positive and separations rates a negative comovement with establishment-specific value added …

in the presence of (i) cyclical fluctuations in the quality of worker-firm matches, or (ii) wages being smoothed within …Typical measures of wages, such as average hourly earnings, fail to capture cyclicality in the effective cost of labor … employment matches. To address both concerns, we estimate cyclicality in labor's user cost exploiting the long-run wage in a …

How skills acquired in vocational education and training (VET) affect wages and employment is not clear. We develop and … wages. We find that firms value cognitive skills on average almost twice as much as interpersonal and manual skills, and … they prize complementarity in cognitive and interpersonal skills. The average return to VET skills in hourly wages is 9 …

that can arise and the number of matches on a given network. Equilibria that exhibit wage dispersion are inefficient in …

-matching theory and a standard labor demand model. Estimation on firm-level data yields support for the labor demand model. Wages and …