Abbritti, Mirko; Fahr, Stephan - In: Journal of Monetary Economics 60 (2013) 7, pp. 871-886
The growth rates of wages, unemployment and output of a number of OECD countries have a strongly skewed distribution. In this paper we analyze to what extent downward wage rigidities can explain these empirical business cycle asymmetries. To this aim, we introduce asymmetric wage adjustment...