Haefke, Christian, Sonntag, Marcus and Van Rens, Thijs (2013) Wage rigidity and job creation. Journal of Monetary Economics, Volume 60 (Number 8). pp. 887-899. doi:10.1016/j.jmoneco.2013.09.003 ISSN 0304-3932.

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Abstract

Recent research in macroeconomics emphasizes the role of wage rigidity in accounting for the volatility of unemployment fluctuations. We use worker-level data from the CPS to measure the sensitivity of wages of newly hired workers to changes in aggregate labor market conditions. The wage of new hires, unlike the aggregate wage, is volatile and responds almost one-to-one to changes in labor productivity. We conclude that there is little evidence for wage rigidity in the data.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Business cycles, Wage surveys
Journal or Publication Title:	Journal of Monetary Economics
Publisher:	Elsevier BV
ISSN:	0304-3932
Official Date:	November 2013
Dates:	Date Event November 2013 Published 8 October 2013 Available 20 September 2013 Accepted 13 December 2010 Submitted
Volume:	Volume 60
Number:	Number 8
Page Range:	pp. 887-899
DOI:	10.1016/j.jmoneco.2013.09.003
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
Date of first compliant deposit:	26 December 2015
Date of first compliant Open Access:	26 December 2015

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