Vogel, Lukas (2008): Interacting nominal and real labour market rigidities.
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Abstract: This note investigates the interaction between nominal and real labour market rigidities. It shows nominal wage rigidity to have little effect on the welfare loss from labour adjustment costs under a labour supply shock. This implies that the second best effect of nominal price stickiness under real wage persistence studied in Duval and Vogel (2007) does not apply to the propagation of supply shocks under nominal wage rigidity and labour adjustment costs.
|Item Type:||MPRA Paper|
|Original Title:||Interacting nominal and real labour market rigidities|
|Keywords:||Labour adjustment costs; wage stickiness; rigidity interaction|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles
E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J23 - Labor Demand
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General
|Depositing User:||Lukas Vogel|
|Date Deposited:||28. Nov 2008 01:13|
|Last Modified:||14. Feb 2013 09:01|
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