wages, which does not impose any structure between real wages and observed cyclical indicators. In particular, we employ a … Bayesian dynamic factor model and longitudinal microdata to estimate common latent factors driving real wages. We find that the … comovement of real wages is related to a common factor that exhibits a mild correlation with the national unemployment rate. Our …

that this model can reproduce the observed cyclical patterns of wages and the skill-premium. The feature of capital …

Traditional models of the labor market typically assume that wages are set by the market, not the firm. However, over … suggest that a monopsonistic model, where individual firms and not the market set wages, may be more appropriate. This model … attributes more wage-setting power to firms, particularly during economic downturns, which helps explain why wages decrease …

How do wages respond to financial recessions? Based on a dynamic macroeconomic model with frictions in the labor and … and explore their effect on wages. First, the financial labor wedge reduces wages. Second, financial constraints may … interact with aggregate labor market conditions in various ways putting upward or downward pressure on wages. We test partial …

This article investigates the role of technology, education and wages in shaping the skill structure of employment … of the overall skill structure. Results document the role that different types of technological change, education, wages …