Business Cycle Models, Aggregation, and Real Wage Cyclicality

Audra Bowlus (), Haoming Liu and Chris Robinson

Journal of Labor Economics, 2002, vol. 20, issue 2, 308-335

Abstract: A substantial literature has developed to estimate the "true" cyclicality of real wages, that is, composition bias free. Two major issues are addressed in this article: aggregation of heterogeneous workers and potential bias in the measurement of the labor input. A general analysis of the biases is presented, and alternative approaches in the literature are nested in a single framework. Estimates based on an efficiency units concept that avoids the usual aggregation problems are presented. Composition bias underestimates the usual parameters of interest unless both the price and the quantity of the labor input are adjusted appropriately.

Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://dx.doi.org/10.1086/338219 main text (application/pdf)
Access to the online full text or PDF requires a subscription.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:v:20:y:2002:i:2:p:308-335

Access Statistics for this article

More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().