Uhlig, H.F.H.V.S.; Xu, Y. - Tilburg University, Center for Economic Research - 1996
A number of authors have proposed theories of efficiency wages to explain the behaviour of aggregate labor markets …. According to these theories, firms do not adjust wages downwards despite available unemployed job seekers, because lower wages … move- ments as well as the rather low cyclical movements in real wages, supporting the point made by Solow (1979), but …