-sectional heterogeneity of establishments' average real wages over the business cycle. While the median establishments' real wages are … procyclical, there is a large fraction of establishments with countercyclical real wages. We are the first to show that … establishments with more procyclical wages have a less procyclical hires rate and employment behavior. We propose a labor market flow …

-sectional heterogeneity of establishments' average real wages over the business cycle. While the median establishments' real wages are … procyclical, there is a large fraction of establishments with countercyclical real wages. We are the first to show that … establishments with more procyclical wages have a less procyclical hires rate and employment behavior. We propose a labor market flow …

This paper investigates the behaviour of employers' monopsony power and workers' wages over the business cycle. Using … German administrative linked employer-employee data for the years 1985-2010 and an estimation framework based on duration … workers' entry wages are of similar magnitude as those predicted under monopsonistic wage setting, suggesting that monopsony …