Wage rigidity and job creation

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Haefke, Christian; Sonntag, Marcus; van Rens, Thijs. Wage rigidity and job creation. 2007
To cite or link this document: http://hdl.handle.net/10230/1138
dc.contributor.author Haefke, Christian
dc.contributor.author Sonntag, Marcus
dc.contributor.author van Rens, Thijs
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2007-04-01
dc.identifier.uri http://hdl.handle.net/10230/1138
dc.description.abstract Recent research in macroeconomics emphasizes the role of wage rigidity in accounting for the volatility of unemployment fluctuations. We use worker-level data from the CPS to measure the sensitivity of wages of newly hired workers to changes in aggregate labor market conditions. The wage of new hires, unlike the aggregate wage, is volatile and responds almost one-to-one to changes in labor productivity. We conclude that there is little evidence for wage stickiness in the data. We also show, however, that a little wage rigidity goes a long way in amplifying the response of job creation to productivity shocks.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1047
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Wage rigidity and job creation
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2016-06-04T02:51:00Z
dc.subject.keyword Macroeconomics and International Economics
dc.subject.keyword wage rigidity
dc.subject.keyword search and matching model
dc.subject.keyword business cycle
dc.rights.accessRights info:eu-repo/semantics/openAccess

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