Workers’ Flows and Real Wage Cyclicality

Anabela Carneiro and Pedro Portugal ()

No 2604, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study investigates real wage cyclicality in Portugal for the years of 1986-98, addressing the heterogeneity in wages responses to aggregate labor market conditions for workers’ hirings and separations. The results exhibit a moderate procyclical behavior of real wages for continuously employed workers, in particular, for job stayers. For workers’ accessions a strongly procyclical behavior in wages was observed, which is consistent with the idea that entry wages are much more procyclical than current wages. This empirical evidence suggests that even micro-data estimates of real wage cyclicality may conceal a strong procyclical wage behavior, when heterogeneity on wages responses to aggregate conditions between employed workers and hirings and separations is not taken into account.

Keywords: wage cyclicality; hirings; separations (search for similar items in EconPapers)
JEL-codes: D21 J30 J31 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2007-02
New Economics Papers: this item is included in nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Workers' Flows and Real Wage Cyclicality (2004)
Working Paper: Workers' Flows and Real Wage Cyclicality (2004)
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