I consider three views of the labor market. In the first, wages are flexible and employment follows the principle of … bilateral efficiency. Workers never lose their jobs because of sticky wages. In the second view, wages are sticky and … inefficient layoffs do occur. In the third, wages are also sticky, but employment governance is efficient. I show that the …

A number of authors have recently emphasized that the conventional model of unemployment dynamics due to Mortensen and … conventional formulation. An interesting side-product is the emergence of spillover effects of average wages on the bargaining … process. We then show that a reasonable calibration of the model can account well for the cyclical behavior of wages and labor …

difference between allocative wages and remitted wages. Using both individual-level and aggregate data, we study and extend the … available evidence on the cyclicality of wages and we pay particular attention to the response of wages to identified monetary … noticeable role in cyclical compensation patterns; (ii) empirically, both the wages for newly hired workers and the "user cost of …

This paper considers a model where individual workers bargain with firms over their wages and where their bargaining … individual firms raises employment (as in the case where the labor market clears) but that wages rise only modestly. In fact …, consistent with the findings of Wilson (1997), some job-specific wages actually fall. Nonetheless, average wages may rise either …

monopsonistically and set wages to retain their existing workers as well as to attract new ones. The model differs from Burdett and … for which the response of wages is modest relative to the response of employment, as appears to be the case in U.S. data …, for certain parameters, the model can explain both the standard deviations of employment and wages and the correlation …

unemployment, called ranking. With the filling of vacancies unaffected by the selection rule, both equilibria have the same … aggregate dynamics, but different distributions of unemployment durations. With the threat point for the Nash bargained wage … being a worker with zero unemployment duration, the wage with ranking is much more sensitive to changes in the tightness of …

) model does not generate nearly enough volatility in unemployment, for plausible parameter values. This paper extends the … this stickiness are sufficient to generate relatively large unemployment fluctuations …

patterns of unemployment. They also explain why different firms may pay similar workers different wages, why wages may be … wages are absolutely rigid aswell as from those in which unemployment arises from asymmetric information …This paper considers two sets of theories attempting to explain wage rigidities and unemployment: implicit contract …

model. Their PC was vertical in the long run at the natural unemployment rate, and their short-run curve shifted up whenever … unemployment was pushed below the natural rate. This paper criticizes the underlying assumption of the Friedman-Phelps approach … that the labor market continuously clears and that changes in unemployment down or up occur only in response to “fooling …

unemployment, Keynes emphasis on relative wages has not been reflected in most contemporary discussions. This short paper suggests …While modern economic theorists have produced a variety of explanations for the failure of wages to fall in the face of … available apparatus for understanding actual unemployment and its fluctuations. Such theories are very closely related to the …