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 …

Several authors have proposed staggered wage bargaining as a way to introduce sticky wages into search and matching … a series of estimated shocks from US data into a search and matching model with sticky prices and wages. I compare the … implications of how the sticky wages enter into the hiring decision, and there seems to be a tradeoff between generating business …

Traditional models of the labor market typically assume that wages are set by the market, not the firm. However, over … suggest that a monopsonistic model, where individual firms and not the market set wages, may be more appropriate. This model … attributes more wage-setting power to firms, particularly during economic downturns, which helps explain why wages decrease …