How do wages respond to financial recessions? Based on a dynamic macroeconomic model with frictions in the labor and … and explore their effect on wages. First, the financial labor wedge reduces wages. Second, financial constraints may … interact with aggregate labor market conditions in various ways putting upward or downward pressure on wages. We test partial …

that this model can reproduce the observed cyclical patterns of wages and the skill-premium. The feature of capital …

Using data from the Panel Study of Income Dynamics, the author examines the cyclicality of wages within employer …-employee matches for the years 1970-91. Recent research on wage cyclicality has suggested that wages are very procyclical (tending to …-based pay will increase the procyclicality of wages within matches. …

movers, and between-company job movers. Wages of internal movers, they find, were slightly more procyclical, and wages of … external movers considerably more procyclical, than those of stayers. The greater cyclicality of movers' wages is particularly … comprised about 90% of all observations in this large sample of British workers, the procyclicality of their wages was the …

wages, which does not impose any structure between real wages and observed cyclical indicators. In particular, we employ a … Bayesian dynamic factor model and longitudinal microdata to estimate common latent factors driving real wages. We find that the … comovement of real wages is related to a common factor that exhibits a mild correlation with the national unemployment rate. Our …