Intertemporal Wage Variation, Employment, and Unemployment

James Adams

Journal of Labor Economics, 1987, vol. 5, issue 1, 106-29

Abstract: A model of labor supply under uncertainty is developed, and comparative statics of current labor are carried out with respect to temporary and persistent wage change. This and a complementary analysis of measurement error suggest that individual wage growth leads to downward-biased estimates of intertemporal labor substitution. An alternative strategy, namely, the use of short-lived industry wage pulses in place of individual wage growth, is free of the above biases. Findings presented in the paper support this point of view. These results also suggest that intertemporal substitution has been undervalued as a source of cyclical changes in unemployment. Copyright 1987 by University of Chicago Press.

Date: 1987
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1086/298140 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JOLE for details.

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:5:y:1987:i:1:p:106-29

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 ().