How do wages respond to financial recessions? Based on a dynamic macroeconomic model with frictions in the labor and … and explore their effect on wages. First, the financial labor wedge reduces wages. Second, financial constraints may … interact with aggregate labor market conditions in various ways putting upward or downward pressure on wages. We test partial …

The focus of this chapter is to consider new developments in the search and matching literature where wages, quit …

price themselves into jobs by undercutting incumbents – imply that real wages are relatively rigid in "bad" times but … of West German labor markets. We find that the elasticity of real wages with respect to output is very close to zero in … effects the cyclicality of new hire wages is approximately the same as that for incumbent wages regardless of whether or not …