Klenow, Peter; Malin, Ben; Bils, Mark - Society for Economic Dynamics - SED - 2014
-- including in the Great Recession and its aftermath. Thus, sticky prices and other forms of countercyclical price markups deserve … substitution. The wedge can be broken into a product market wedge (price markup) and a labor market wedge (wage markup). Based on … the wages of employees, the literature has attributed the wedge almost entirely to labor market distortions (see, e …