Real Wages over the Business Cycle: Estimating the Impact of Heterogeneity with Micro Data

Michael Keane (), Robert Moffitt and David Runkle

Journal of Political Economy, 1988, vol. 96, issue 6, 1232-66

Abstract: New evidence on the correlation between the cycle and the real wage is provided by using panel data to adjust for the aggregation cum selectivity bias that arises when those who move in and out of the work force over the cycle have systematically different unobserved permanent and transitory wage components than those who do not. The results show that selectivity bias is present, for those with high transitory wages are more likely to lose employment, and that a true, compositio n-constant real wage index moves countercyclically, but less quantitatively than previous estimates using micro data have suggested. Copyright 1988 by University of Chicago Press.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (110)

Downloads: (external link)
http://dx.doi.org/10.1086/261586 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE 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:jpolec:v:96:y:1988:i:6:p:1232-66

Access Statistics for this article

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