We explore the impact of wage adjustment on employment with a focus on the role of downward nominal wage rigidities. We … significantly smaller than the rise in the probability of an upward wage response associated with an increase in demand. Estimation … results point to a negative effect of downward wage rigidities on employment at the firm level …

wages. We estimate a negative connection between establishments’ wage cyclicality and their employment cyclicality, thereby … cycle. While wages of the median establishment are moderately procyclical, 36 percent of establishments have countercyclical …

This paper studies the efficient agreements about the dependence of workers' earnings on employment, when the … employment level is controlled by firms. The firms ' superior information about profitability conditions is responsible for this … form of contract governance. Under plausible assumptions, such agreements will cause employment to diverge from efficiency …

We explore the impact of wage adjustment on employment with a focus on the role of downward nominal wage rigidities. We … significantly smaller than the rise in the probability of an upward wage response associated with an increase in demand. Estimation … results point to a negative effect of downward wage rigidities on employment at the firm level …

Although the quantitative relationship between employment cyclicality and wage cyclicality is central for the dynamics … relationship between employment cyclicality and wage cyclicality at the establishment level. We use this micro-estimate as a …