We analyze to what extent skill heterogeneity in the labor market with different wage formation mechanisms can explain …

face an elastic labor supply, so that they can be labor constrained at the efficiency wage. When this is the case, we show …

of the labor force, between-groups wage inequality and the level of unemployment. The main result is that a labor market … with wage rigidities may not recover from such a temporary labor supply shock : with a younger and less experienced labor … even after the shock. In a competitive labor market, in contrast, wage inequality and notably, the wage return to …

three different avenues that have been followed to corret the model : change in wage formation, change in the calibration …

efficiency wage model in which money is introduced via a cash-in-advance constraint. Households choose how much effort to devote … by comparing present real and nominal wages with past ones. This special intertemporal effort function implies wage … to match labor market moments and also to build up a transmission mechanism that affects employment through nominal wage …

responsible for long-term oscillations. We investigate in the third part whether habits applied to wage formation explain key …

of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working … persistently affected, but the penalty on the hourly wage (and earnings) increases with experience, and attains roughly -6% ten …