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

substantial decline in both unemployment and wages. Financial constraints therefore weaken the direct link between wage rigidity …How do wages respond to financial recessions? Based on a dynamic macroeconomic model with frictions in the labor and … the financial market, we address two prominent mechanism through which firms' financial constraints amplify unemployment …

not the case. Although unemployment is low, the labor market is not 'tight'. On the contrary, we show that what matters … to maintain their real wages by reducing labor demand still further. Furthermore, we argue inflationary pressures have …

Persistent unemployment after recessions and the policies required to bring it down are the subject of an ongoing … unemployment, requiring the implementation of structural policy reforms. The alternative view is that the slow recovery of the … economy is due to cyclic reasons coming from lack of demand which prevents unemployment from falling quickly. Knowing whether …