Recent research in macroeconomics emphasizes the role of wage rigidity in accounting for the volatility of unemployment … 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. We also show …

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 …

wages are rigid. We explore whether this explanation is consistent with the data. We show that the wage of newly hired … workers, unlike the aggregate wage, is volatile and responds one-to-one to changes in labor productivity. In order to … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle. …