Haefke, Christian; Sonntag, Marcus; van Rens, Thijs - C.E.P.R. Discussion Papers - 2012
Recent research in macroeconomics emphasizes the role of wage rigidity in accounting for the volatility of unemployment …, however, that a little wage rigidity goes a long way in amplifying the response of job creation to productivity shocks. … aggregate labor market conditions. The wage of new hires, unlike the aggregate wage, is volatile and responds almost one …