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We examine the impact of wage stickiness when employment has an effort as well as hours dimension. Despite wages being predetermined, the labor market clears through the effort margin. We compare this model quantitatively to models with flexible and sticky wages, but no effort margin. Allowing...
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productivity shocks. In particular, the employment response to a permanent productivity shock is more likely to be positive the …
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We examine the impact of wage stickiness when employment has an effort as well as hours dimension. Despite wages being predetermined, the labor market clears through the effort margin. We compare this model quantitatively to models with flexible and sticky wages, but no effort margin. Allowing...
Persistent link: https://www.econbiz.de/10012471475
productivity shocks. In particular, the employment response to a permanent productivity shock is more likely to be positive the …
Persistent link: https://www.econbiz.de/10013096881
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