Labor disruption costs and real wages cyclicality

María Cervini-Plá, José Silva and Antonia López-Villavicencio
Authors registered in the RePEc Author Service: Antonia López Villavicencio

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we propose a matching and search model with adjustment costs in the form of labor disruption charges that can generate counter-cyclical real wages. Empirically, we use a measure of wage cyclicality based on the generalized impulse response function of real wages to a shock in a cycle measure. We provide evidence that wages in the United States are counter-cyclical during the first few quarters. The calibration and simulated results of the model match remarkably well the counter-cyclicality obtained from our empirical model.

Keywords: Labor disruption costs; real wages; matching frictions; wage cyclicality (search for similar items in EconPapers)
JEL-codes: E24 E32 J32 J63 (search for similar items in EconPapers)
Date: 2012-10-29
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/42366/1/MPRA_paper_42366.pdf original version (application/pdf)

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:pra:mprapa:42366

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().