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 …

-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 …

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

Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment … rather than wages, at odds with the quantitative predictions of the canonical search model – even if wages are only … reservation wages, and consider an alternative reservation wage model based on reference dependence in job search. This extension …

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 …

budget renders gross wages more rigid over the cycle and, as a result, strengthens the model's endogenous propagation …