Recent research in macroeconomics emphasizes the role of wage rigidity in ac- counting for the volatility of … changes in aggregate labor market conditions. The wage of new hires, unlike the aggregate wage, is volatile and responds … almost one-to-one to changes in labor productivity. We conclude that there is little evidence for wage stickiness in the data …

Wage inequality in the United States has grown substantially in the past two decades. Standard supply-demand analysis … outward shift in the demand for high skilled labor. In this paper we examine a simple static channel in which the wage premium … for skill may grow - increased firm entry. We consider a model of wage dispersion where there are two types of workers and …

, under a Nash bargain, the equilibrium wage is linear in a person-specific component, a firm-specific component, and the … posterior mean of beliefs about match quality. Second, the optimal separation policy is of the reservation wage type …) Program at the US Census Bureau. I present both fixed and mixed model specifications of the equilibrium wage function, taking …

, (ii) the relative volatility of employment rose, and (iii) the relative (and absolute) volatility of the real wage rose …, which reduced hiring frictions. We develop a simple model with hiring frictions, variable effort, and endogenous wage …

The standard New Keynesian model with staggered wage setting is shown to imply a simple dynamic relation between wage … inflation and unemployment. Under some assumptions, that relation takes a form similar to that found in empirical wage … structural wage equation derived here is shown to account reasonably well for the comovement of wage inflation and the …

variabilities but also generates strongly countercyclical unemployment rates. With some wage rigidity the model also matches …