Workers' Flows and Real Wage Cyclicality

Anabela Carneiro and Pedro Portugal ()

CEF.UP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: This study investigates real wage cyclicality in Portugal for the years of 1986-98, adressing 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: J30 J31 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2004-05
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Workers’ Flows and Real Wage Cyclicality (2007)
Working Paper: Workers' Flows and Real Wage Cyclicality (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:por:cetedp:0402

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