Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/american-economic-association/labor-contracts-equal-treatment-and-wage-unemployment-dynamics-tcz4xyqq0V
References (44)
-
G. Menzio, Espen Moen (2008)
Worker ReplacementLabor: Personnel Economics
-
Yongsung Chang, Jay Hong (2005)
Do Technological Improvements in the Manufacturing Sector Raise or Lower Employment?Labor: Supply & Demand
-
J. McDonald, Christopher Worswick (1999)
Wages, Implicit Contracts, and the Business Cyle: Evidence from Canadian Micro DataJournal of Political Economy, 107
-
(1991)
The Effect of Implicit Contracts on the Movement of Wages Over the Business Cycle: Evidence from Micro DataJournal of Political Economy, 99
-
M. Sonntag, van Rens (2008)
Wage Rigidity and Job Creation -
C. Pissarides (1986)
Unemployment and Vacancies in BritainEconomic Policy, 1
-
(2005)
Evaluating the Economic Significance of Downward Nominal Wage Rigidity -
G. Menzio (2005)
High-Frequency Wage Rigidity -
T. Bewley (1999)
Why Wages Don't Fall during a Recession -
W. Macleod, J. Malcomson (1989)
Implicit Contracts, Incentive Com-patibility, and Involuntary Unemployment -
(2005)
Cohort E¤ects and Catch-up in Wages and Promotions,Department of Economics, University of Michigan -
R. Hall (2005)
Employment Fluctuations with Equilibrium Wage StickinessThe American Economic Review, 95
-
Marcello Estevão, B. Wilson (1998)
Nominal Wage Rigidity and Real Wage CyclicalityLabor eJournal
-
(2007)
Federal Reserve Bank of Philadelphia Working Paper -
Marcello Estevão, B. Wilson (1998)
A Note on Nominal Wage Rigidity and Real Wage CyclicalitySocial Science Research Network, 1998
-
Bengt Holmstrom (1983)
Equilibrium Long-Term Labor ContractsQuarterly Journal of Economics, 98
-
Leena Rudanko (2009)
Labor market dynamics under long-term wage contracting ☆Journal of Monetary Economics, 56
-
Josh Angrist, Victor Lavy, G. Imbens, Donald Rubin, Alan Krueger (2007)
The Effect of Implicit Contracts on the Movement of Wages Over the Business Cycle : Evidence from Micro Data -
Although the model would also have to be modi…ed to allow the introduction of new …rms -
G. Baker, Michael Gibbs, Bengt Holmstrom (1994)
The Wage Policy of a FirmQuarterly Journal of Economics, 109
-
Illoong Kwon, E. Milgrom (2007)
Cohort Effects in Wages and Promotions -
Nils Gottfries (1992)
Insiders, Outsiders, and Nominal Wage ContractsJournal of Political Economy, 100
-
S. Davis, J. Haltiwanger, Scott Schuh (1997)
Job Creation and Destruction -
Alan Carruth, A. Oswald (1987)
On Union Preferences and Labour Market Models: Insiders and Outsi dersThe Economic Journal, 97
-
L. Christofides, T. Stengos (2003)
Wage Rigidity in Canadian Collective Bargaining AgreementsIndustrial & Labor Relations Review, 56
-
A. Royalty (1998)
Job‐to‐Job and Job‐to‐Nonemployment Turnover by Gender and Education LevelJournal of Labor Economics, 16
-
J. Agell, P. Lundborg (2003)
Survey evidence on wage rigidity and unemployment : Sweden in the 1990sThe Scandinavian Journal of Economics, 105
-
Nils Gottfries, Tomas Sjöström (2000)
Insider bargaining power, starting wages, and involuntary unemploymentThe Scandinavian Journal of Economics, 102
-
Philip Caju, C. Fuss, L. Wintr (2007)
Downward Wage Rigidity for Different Workers and Firms: An Evaluation for Belgium Using the IWFP ProcedureMacroeconomics eJournal
-
R. Hall (1988)
Intertemporal Substitution in ConsumptionJournal of Political Economy, 96
-
Jonathan Thomas (2005)
Fair Pay and a Wage-Bill Argument for Low Real Wage Cyclicality and Excessive Employment VariabilityWiley-Blackwell: Economic Journal
-
George Akerlof, Janet Yellen (1990)
The Fair Wage-Effort Hypothesis and UnemploymentQuarterly Journal of Economics, 105
-
Michael Elsby (2008)
NBER WORKING PAPER SERIES EVALUATING THE ECONOMIC SIGNIFICANCE OF DOWNWARD NOMINAL WAGE RIGIDITY -
Donggyun Shin, Kwanho Shin (2003)
WHY ARE THE WAGES OF JOB STAYERS PROCYCLICAL?Macroeconomic Dynamics, 12
-
Till Wachter, S. Bender (2007)
Do Initial Conditions Persist between Firms? An Analysis of Firm-Entry Cohort Effects and Job Losers Using Matched Employer-Employee Data -
S. Fujita, Garey Ramey (2007)
Reassessing the Shimer FactsLabor: Supply & Demand
-
R. Hall (2005)
Job Loss, Job Finding, and Unemployment in the U.S. Economy over the Past Fifty YearsNBER Macroeconomics Annual, 20
-
Labor Contracts , Equal Treatment , and Wage - Unemployment Dynamics -
R. Kaufman (1984)
ON WAGE STICKINESS IN BRITAIN'S COMPETITIVE SECTORBritish Journal of Industrial Relations, 22
-
Lorne Carmichael (1983)
Firm-Specific Human Capital and Promotion LaddersThe Bell Journal of Economics, 14
-
R. Shimer (2007)
Reassessing the Ins and Outs of UnemploymentERN: Other Macroeconomics: Employment
-
P. Devereux, R. Hart (2005)
The Spot Market Matters: Evidence on Implicit Contracts from BritainIZA Institute of Labor Economics Discussion Paper Series
-
S. Macintyre (1972)
A Fair WageBritish Medical Journal, 1
-
John. Moore (2007)
Stable Sets and Steady WagesLabor: Personnel Economics
- Publisher
- American Economic Association
- Copyright
- Copyright © 2010 by the American Economic Association
- Subject
- Articles
- ISSN
- 1945-7715
- eISSN
- 1945-7715
- DOI
- 10.1257/mac.2.3.98
- Publisher site
- See Article on Publisher Site
Abstract
Abstract This paper analyses a model in which firms cannot pay discriminate based on year of entry. It is assumed that workers can costlessly quit at any time, while firms are committed to contracts. We solve for the dynamics of wages and unemployment, and show that real wages display a degree of downward rigidity and do not necessarily clear the labor market. Using sectoral productivity data from the post-war US economy, we assess the ability of the model to match the actual unemployment series. We also show that equal treatment follows from the assumption of at-will employment contracting in our model. (JEL E24, E32, J31, J41 )
Journal
American Economic Journal: Macroeconomics – American Economic Association
Published: Jul 1, 2010