Jetter, Michael; Nikolsko-Rzhevskyy, Alex; Smith, William T. - In: Journal of Macroeconomics 37 (2013) C, pp. 93-109
This paper shows that the volatility of wages has significant effects on a country’s rate of economic growth. Our … theoretical framework suggests two distinct channels in which wage volatility affects growth: a positive direct way and a negative …, ignoring indirect effects operating through government size may mask the real net effects of volatility on growth, which could …