Wage Cyclicality and Composition Bias in the Norwegian Economy*

2020 ◽  
Vol 122 (4) ◽  
pp. 1403-1430
Author(s):  
Bjorn Dapi
Keyword(s):  
Wage Cyclicality

scholarly journals Evolving Wage Cyclicality in Latin America

2016 ◽  
pp. lhw046
Author(s):  
Luca Gambetti ◽  
Julián Messina
Keyword(s):  
Latin America ◽  
Wage Cyclicality

scholarly journals Unemployment Fluctuations, Match Quality, and the Wage Cyclicality of New Hires

2016 ◽  
Author(s):  
Mark Gertler ◽  
Christopher Huckfeldt ◽  
Antonella Trigari
Keyword(s):  
Match Quality ◽  
Wage Cyclicality ◽  
New Hires

scholarly journals Unemployment Fluctuations, Match Quality, and the Wage Cyclicality of New Hires

2020 ◽  
Vol 87 (4) ◽  
pp. 1876-1914 ◽  
Author(s):  
Mark Gertler ◽  
Christopher Huckfeldt ◽  
Antonella Trigari
Keyword(s):  
Job Search ◽  
Marginal Cost ◽  
Market Volatility ◽  
Match Quality ◽  
Composition Effects ◽  
Reasonable Approximation ◽  
Job Match ◽  
Wage Cyclicality ◽  
Sticky Wages ◽  
New Hires

Abstract We revisit the issue of the high cyclicality of wages of new hires. We show that after controlling for composition effects likely involving procyclical upgrading of job match quality, the wages of new hires are no more cyclical than those of existing workers. The key implication is that the sluggish behaviour of wages for existing workers is a better guide to the cyclicality of the marginal cost of labour than is the high measured cyclicality of new hires wages unadjusted for composition effects. Key to our identification is distinguishing between new hires from unemployment versus those who are job changers. We argue that to a reasonable approximation, the wages of the former provide a composition-free estimate of the wage flexibility, while the same is not true for the latter. We then develop a quantitative general equilibrium model with sticky wages via staggered contracting, on-the-job search, and heterogeneous match quality, and show that it can account for both the panel data evidence and aggregate evidence on labour market volatility.

scholarly journals Evolving Wage Cyclicality in Latin America

2016 ◽  
Author(s):  
Luca Gambetti ◽  
Julián Messina
Keyword(s):  
Latin America ◽  
Wage Cyclicality

Match Quality, Contractual Sorting and Wage Cyclicality

2017 ◽  
Author(s):  
Giovanni Gallipoli ◽  
Joao Galindo da Fonseca ◽  
Yaniv Yedid-Levi
Keyword(s):  
Match Quality ◽  
Wage Cyclicality

Why Does the Cyclical Behavior of Real Wages Change Over Time?

2004 ◽  
Vol 94 (4) ◽  
pp. 836-856 ◽  
Author(s):  
Kevin X. D Huang ◽  
Zheng Liu ◽  
Louis Phaneuf
Keyword(s):  
Interwar Period ◽  
Nominal Wage ◽  
Cycle Model ◽  
Real Wages ◽  
Output Structure ◽  
Price Rigidities ◽  
Wage Cyclicality ◽  
Cyclical Behavior ◽  
Business Cycle Model ◽  
Over Time

The cyclical behavior of real wages has evolved from mildly countercyclical during the interwar period to modestly procyclical in the postwar era. This paper presents a general-equilibrium business-cycle model that helps explain the evolution. In the model, changes in the real wage cyclicality arise from interactions between nominal wage and price rigidities and an evolving input-output structure.

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