Perry, Bryan; Phillips, Kerk L.; Spencer, David E. - Department of Economics, Brigham Young University - 2012
There is considerable evidence that real wages have become more procyclical over time in the U.S. A novel explanation …, as the input-output structure of an economy becomes more sophisticated, the response of real wages to an aggregate demand … shock becomes more procyclical (less countercyclical) in an environment with both sticky wages and prices. We test the basic …