wage bargaining, which generates time-varying labor income shares under incomplete markets. As inequality increases … bonds. At the same time, greater wage instability raises workers' demand for safe assets. The resulting surge in …

We design and field an innovative survey of unemployment insurance (UI) recipients that yields new insights about wage … stickiness on the layoff margin. Most UI recipients express a willingness to accept wage cuts of 5-10 percent to save their jobs … wage cuts would save their jobs. For lost union jobs, 45 percent say contractual restrictions prevent wage cuts. Among …

are instead determined endogenously. We simultaneously extend the standard effort efficiency-wage model by incorporating …

We introduce a form of downward nominal wage rigidity that can vary in intensity across a continuum of labor varieties …. The model delivers a static wage Phillips curve linking current wage inflation to current unemployment. For standard … parameterizations, the dynamics of the model are qualitatively and quantitatively similar to those of the new-Keynesian model with wage …

We consider a New Keynesian model with downward nominal wage rigidity (DNWR) and show that government spending is much …

We introduce dynamic incentive contracts into a model of unemployment dynamics and present three results. First, wage …-order equivalent in an economy with flexible incentive pay and without bargaining, vis-á-vis an economy with rigid wages. Second, wage …% of wage cyclicality in the data arises from incentives. A standard model without incentives calibrated to weakly …