Unemployment Benefits, Contract Length and Nominal Wage Flexibility

Nominal Wages . the Nairu and Wage Flexibility

Nominal Wage Flexibility in a Monetary Union

Membership in a monetary union reduces the possibilities to counteract fluctuations in productivity by monetary policy. One condition for entrance not to lead to adverse unemployment performance is that wages are flexible with respect to productivity. Here I show that, depending on workers’ risk aversion, the incentive for workers to choose more nominal wages flexibility may increase after entr...

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 ...

Downward nominal wage flexibility– real or measurement error?

This paper presents a new method to correct for measurement error in wage data and applies this method to address an old question. How much downward wage flexibility is there in the U.S? We apply standard methods developed by Bai and Perron (1998b) to identify structural breaks in time series data. Applying these methods to wage histories allows us to identify when each person experienced a cha...

Running Out of Time: Limited Unemployment Benefits and Wage Dispersion

We study unemployment insurance (UI) in a general equilibrium environment in which unemployed workers only receive benefits for a finite length of time. Although all workers have identical productivity and leisure value, the random arrival of job offers creates ex-post differences with respect to their time remaining until benefit expiration. Firms, which are also homogenous, can exploit these ...