scholarly journals The Role of Real Wage Rigidity and Labor Market Frictions for Unemployment and Inflation Dynamics

2006 ◽  
Author(s):  
Kai Philipp Christoffel ◽  
Tobias Linzert
Keyword(s):  
Labor Market ◽  
Real Wage ◽  
Wage Rigidity ◽  
Market Frictions ◽  
Inflation Dynamics ◽  
Labor Market Frictions ◽  
Real Wage Rigidity

scholarly journals Emerging Market Business Cycles: The Role of Labor Market Frictions

2012 ◽  
Vol 12 (237) ◽  
pp. 1 ◽  
Author(s):  
Emine Boz ◽  
Ceyhun Bora Durdu ◽  
Nan Li ◽  
◽  
◽  
...  
Keyword(s):  
Labor Market ◽  
Business Cycles ◽  
Emerging Market ◽  
Market Frictions ◽  
Labor Market Frictions

FIRM DYNAMICS, ENDOGENOUS MARKUPS, AND THE LABOR SHARE OF INCOME

2014 ◽  
Vol 19 (6) ◽  
pp. 1309-1331 ◽  
Author(s):  
Andrea Colciago ◽  
Lorenza Rossi
Keyword(s):  
Labor Market ◽  
Real Wage ◽  
Firm Dynamics ◽  
Nash Bargaining ◽  
Wage Rigidity ◽  
Strategic Interactions ◽  
Labor Share ◽  
Productivity Shock ◽  
Countercyclical Markups ◽  
Real Wage Rigidity

Recent U.S. evidence suggests that the response of labor share to a productivity shock is characterized by countercyclicality and overshooting. These findings cannot be reconciled easily with existing business cycle models. We extend the Diamond–Mortensen–Pissarides model of search in the labor market by considering strategic interactions among an endogenous number of producers, which leads to countercyclical price markups. Although Nash bargaining delivers a countercyclical labor share, we show that countercyclical markups are fundamental to address the overshooting. On the contrary, we find that real wage rigidity does not seem to play a crucial role in the dynamics of the labor share of income.

Sign in / Sign up

Export Citation Format

Share Document