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Employment Fluctuations with Equilibrium Wage Stickiness
Employment Fluctuations Equilibrium Wage
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2015/7/20
Following a recession, the aggregate labor market is slack–employment remains below normal and recruiting efforts of employers, as measured by help-wanted advertising and vacancies, are low. A model o...
Equilibrium Wage and Employment Dynamics in a Model of Wage Posting without Commitment
wage dispersion wage setting rank-preserving equilibrium
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2012/10/24
A rich but tractable variant of the Burdett-Mortensen model of wage setting behavior is formulated and a dynamic market equilibrium solution to the model is defined and characterized. In the model, fi...
Equilibrium Wage Arrears: A Theoretical and Empirical Analysis of Institutional Lock-In
Wage arrears contractual failure institutions institutional lock-in social interactions
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2013/10/17
We present a model of wage contract violation that implies a possibility of multiple equilibria in the level of arrears. Positive feedback arises because each employer’s arrears affect the costs of la...