Contract Form, Wage Flexibility, and Employment

9905 VILHUBERT , Lars Wage Flexibility and Contract Structure in Germany

In this paper we look at how labor market conditions at di erent points during the tenure of individuals with rms are correlated with current earnings Using data on individuals from the German Socioeconomic Panel for the period to we nd that both the contemporaneous unemployment rate and prior values of the unemployment rate are signi cantly correlated with current earnings contrary to results ...

Wage Flexibility and Employment Fluctuations: Evidence from the Housing Sector

Wage Flexibility and Employment Fluctuations: Evidence from the Housing Sector* Many economists suspect that downward nominal wage rigidities in ongoing labor contracts are an important source of employment fluctuations over the business cycle but there is little direct empirical evidence on this conjecture. This paper compares three occupations in the housing sector with very different wage se...

Wage flexibility

Wage Determination and Employment Fluctuations

Following a recession, the aggregate labor market is slack—employment remains below normal and recruiting efforts of employers, as measured by vacancies, are low. A model of matching frictions explains the qualitative responses of the labor market to adverse shocks, but requires implausibly large shocks to account for the magnitude of observed fluctuations. The incorporation of wage-setting fri...

Wage-Employment Contracts

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