Wang, Bingsong (2022) A note on the unemployment volatility puzzle : is credible wage bargaining the answer? Macroeconomic Dynamics, 26 (1). pp. 250-262. doi:10.1017/S1365100520000024 ISSN 1365-1005.

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Abstract

This paper shows that the ability of the credible wage bargaining model to match the observed unemployment volatility hinges on an unrealistic assumption about disagreement payoffs to the firm. Relaxing this assumption can lead to the substantial wage flexibility. As a consequence, the model is unable to capture the observed unemployment volatility.

Item Type:	Journal Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Unemployment, Unemployment -- Effect of wages on, Wages, Wage bargaining
Journal or Publication Title:	Macroeconomic Dynamics
Publisher:	Cambridge University Press
ISSN:	1365-1005
Official Date:	January 2022
Dates:	Date Event January 2022 Published 5 March 2020 Available 31 December 2019 Accepted
Volume:	26
Number:	1
Page Range:	pp. 250-262
DOI:	10.1017/S1365100520000024
Status:	Peer Reviewed
Publication Status:	Published
Reuse Statement (publisher, data, author rights):	This article has been accepted for publication in a revised form for publication in Macroeconomic Dynamics https://www.cambridge.org/core/journals/macroeconomic-dynamics
Access rights to Published version:	Restricted or Subscription Access
Copyright Holders:	© Cambridge University Press 2020
Date of first compliant deposit:	15 January 2020
Date of first compliant Open Access:	22 January 2020
Related URLs:	Publisher

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