Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment … rather than wages, at odds with the quantitative predictions of the canonical search model – even if wages are only … reservation wages, and consider an alternative reservation wage model based on reference dependence in job search. This extension …

. Despite the massive size of the migrant influx, no adverse effects on the average wages of men or women or on total employment … in the informal sector, whereas both wage employment and wages of men in the formal sector increase. Our findings …