Along with house rents, wages have frequently been described as the "stickiest" prices in the economy, rarely adjusted … more than once a year. Because of this stickiness (which arises from the transactions costs involved in changing wages), a … distinction exists between the adjustment of wages and the size of that adjustment. This distinction has important implications …

To answer the question whether managers are paid for market power, we propose a theory of executive compensation in an …

This paper presents a complete general equilibrium model with flexible wages where the degree to which wages and … tempers the bargaining power of workers and thus dampens the increase in their real wages. The procyclical movement of wages …

financially constrained offer an increasing wage profile: They pay lower wages today in exchange of higher wages once they become … unconstrained and operate at a larger scale. In equilibrium, constrained firms are on average smaller and pay lower wages. In this … way the model generates a positive relation between firm size and wages. Using data from the National Longitudinal Survey …

the analytical effort is spent here. I review the theory underlying such a relationship, and develop and implement a model …