Cervini-Plá, María and Silva, José I. and López-Villavicencio, Antonia (2012): Labor disruption costs and real wages cyclicality.
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In this paper, we propose a matching and search model with adjustment costs in the form of labor disruption charges that can generate counter-cyclical real wages. Empirically, we use a measure of wage cyclicality based on the generalized impulse response function of real wages to a shock in a cycle measure. We provide evidence that wages in the United States are counter-cyclical during the first few quarters. The calibration and simulated results of the model match remarkably well the counter-cyclicality obtained from our empirical model.
|Item Type:||MPRA Paper|
|Original Title:||Labor disruption costs and real wages cyclicality|
|Keywords:||Labor disruption costs, real wages, matching frictions, wage cyclicality|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J63 - Turnover; Vacancies; Layoffs
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J32 - Nonwage Labor Costs and Benefits; Private Pensions
|Depositing User:||María Cervini-Plá|
|Date Deposited:||03. Nov 2012 05:59|
|Last Modified:||12. Feb 2013 10:06|
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