Koskela, Erkki (contributor); Schöb, Ronnie (contributor) - 2007
acting in various labor market
environments.
JEL Classification: E24, E32, J50.
Keywords: Efficiency wages, wage rigidity …
Weiss (1980) can explain why firms set wages above market clearing levels so that
unemployment occurs in equilibrium. These … models fail, however, to explain downward
rigid wages during a recession, when wages are almost constant as negative …