present labor market conditions. Furthermore, we revisit recent findings of greater wage cyclicality of new hires. Overall, we … cyclical than those of existing workers. We argue that much of the excess wage cyclicality of new hires discussed by the …

) and an on-the-job search model (Hagedorn and Manovskii, 2013) for the wage formation of different worker types over the …), we find that previous evidence for the excess wage cyclicality of job changers can be entirely explained by cyclical …-employee matches, we also find no excess wage cyclicality for new hires from unemployment - the key worker type's wage for …

occupation switchers are highly cyclical. We uncover higher wage cyclicality also among workers who switch occupations within the … same firm. Moreover, wage cyclicality increases, the more different current and previous occupations' required skills. Our … quality in worker's occupation, rather than wage flexibility. …

decreasing fast near the steady state, firms' efficiency wage contracts generate significant endogenous procyclical variations of …

against idiosyncratic risk. We show that this heterogeneity implies wage rigidity relative to a complete insurance economy …