backloaded in good times and frontloaded in bad times. We prove that there exists a unique spot target wage, which serves as an … attraction point for smooth wage adjustments. The structural model is estimated on matched employer-employee data from Sweden …

destruction given the wage contract between matched firms and workers. The outcome is a model for the flow of new jobs and …

, the government faces recruitment problems. The optimal steady-state wage premium depends mainly on the labour market … the optimal policy can increase the volatility of unemployment significantly. Public sector wage and employment shocks … have mixed effects on unemployment. A wage shock raises the unemployment rate, while a reduction in the separations lowers …

, the government faces recruitment problems. The optimal steady-state wage premium depends mainly on the labour market … the optimal policy can increase the volatility of unemployment significantly. Public sector wage and employment shocks … have mixed effects on unemployment. A wage shock raises the unemployment rate, while a reduction in the separations lowers …

the model delivers this result: (i) the procyclical values of non-market activities and (ii) wage rigidity. The smaller … the value of the extensive-margin labor supply elasticity is, the stronger the first channel is. Wage rigidity helps …

wage has risen. We propose an explanation for all three changes that is based on a common source: a decline in labor market … frictions. We develop a simple model with labor market frictions, variable effort, and endogenous wage rigidities to illustrate … observed decline in output volatility. -- Labor hoarding ; labor market frictions ; wage rigidities ; effort choice …

wage has risen. We propose an explanation for all three changes that is based on a common source: a decline in labor market … frictions. We develop a simple model with labor market frictions, variable effort, and endogenous wage rigidities to illustrate … observed decline in output volatility. -- labor hoarding ; labor market frictions ; wage rigidities ; effort choice …

Theoretical models of downward real wage rigidity generate asymmetric wage cyclicality with real wages being rigid in … generate the asymmetric wage cyclicality found in the panel data. The model also can match most of the properties of wages and …