Estevao, Marcello M.; Wilson, Beth Anne - Federal Reserve Board (Board of Governors of the … - 1998
We discuss the ability of standard estimates of the correlation of wages and employment to measure the relative … and demand shocks, nor give an indication of the response of wages to aggregate demand shocks. Following this, we test the … predictions of a neo-Keynesian model for the correlation of employment and wages using restrictions generated by the model to …