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 …

the time of hiring and the impact of labor market conditions at the time of hiring on future wages. The price of labor and … based on the behavior of individual wages and turnover. I find that a one percentage point increase in unemployment … individual wages and also noticeably higher than the cyclicality of the wages of newly hired workers. I conclude that the price …