Real rigidities that limit the responsiveness of real marginal cost to output are a key ingredient of sticky price models necessary to account for the dynamics of output and inflation. We argue here, in the spirit of Bils and Kahn (2000), that the behavior of marginal cost over the cycle is...

We show that wage setting in the Colombian manufacturing industry is not fundamentally driven by labor productivity in contrast to the standard theoretical prediction. On the contrary, internal institutional arrangements – payroll taxation, the minimum wage or the price wedge between...

This report studies the Bulgarian labor market with a view to understand the interactions between the performance of the Bulgarian economy and the functioning of its labor market. The report assesses also the position of Bulgaria vis-a-vis compliance with the "acquis communautaire," and provides...