Interacting nominal and real labour market rigidities

Lukas Vogel

MPRA Paper from University Library of Munich, Germany

Abstract: Abstract: This note investigates the interaction between nominal and real labour market rigidities. It shows nominal wage rigidity to have little effect on the welfare loss from labour adjustment costs under a labour supply shock. This implies that the second best effect of nominal price stickiness under real wage persistence studied in Duval and Vogel (2007) does not apply to the propagation of supply shocks under nominal wage rigidity and labour adjustment costs.

Keywords: Labour adjustment costs; wage stickiness; rigidity interaction (search for similar items in EconPapers)
JEL-codes: E24 E32 J23 J30 (search for similar items in EconPapers)
Date: 2008-11
New Economics Papers: this item is included in nep-cba, nep-lab and nep-mac
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https://mpra.ub.uni-muenchen.de/11798/1/MPRA_paper_11798.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/24513/2/MPRA_paper_24513.pdf revised version (application/pdf)

Related works:
Journal Article: Interacting nominal and real labour market rigidities (2011)
Working Paper: Interacting nominal and real labour market rigidities (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:11798

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