This article studies the responses of real wages and labour market flows of immigrants in Spain for the period between ….85% drop in real wages for natives and immigrants, respectively. However, these differences only occur among low-tenure workers …

on initial labour market outcomes including status, wages and employment stability, which persist over the subsequent ten …

I propose a new mechanism for sluggish wages based on workers' noisy information about the state of the economy. Wages … higher wages. This increases firms' incentives to post more vacancies, which makes unemployment volatile and sensitive to … aggregate shocks. The model is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment …

of workers in Spain. Real wages are weakly procyclical in Spain and focusing on differences in different phases of the … cyclicality in recessions. Furthermore, higher levels of unemployment do not translate into additional real wages adjustments when …. Nevertheless, wages of newly-hired workers are the most sensitive to the business cycle and exhibit the lowest asymmetric pattern …

literature. Our analysis is cast within a dynamic setting and the endogeneity of each outcome is assessed through the estimation …

economic conditions at the time of hiring on future wages. Measured by the labor's user cost, the price of labor is …