Wage Gaps, Factor Shares and Real Wages

Procyclical Real Wages Under Nominal-Wage Contracts With Productivity Variations

A frequent criticism directed at many macroeconomic models, especially those with wage stickiness, concerns their inability to account for the procyclical pattern of real wages. This article offers a resolution of this problem by introducing productivity factors into the determination of sticky wages. This resolution makes the resulting model more consistent with standard microeconomic theory a...

Welfare-to-Work, Wages and Wage Growth

This paper attempts to uncover the effects of a welfare-to-work programme, that acts as a wage subsidy, on wage growth by exploiting an expansion to this welfare programme in the UK. The conventional wisdom is that such programmes trap recipients into low wage, low quality work – this comes from the simple argument that the “poverty trap”, which a wage subsidy for low income workers, induces re...

Wage Gaps Large and Small

Wage Gaps Large and Small The law of one wage does not strictly hold, nor should it be expected to hold, in contemporary labor markets. The law of one wage, however, provides a surprisingly good first approximation of the structure of U.S. wages. This generalization is drawn from research on a diverse set of topics: the Mincerian wage equation and earnings imputation, union wage differentials, ...

Nominal Wages . the Nairu and Wage Flexibility

Real Wages, Wage Inequality and the Regional Cost-of-living in the UK

University graduates in the UK are more concentrated in regions where the cost of housing is higher than other groups. This implies that many graduates face a higher cost-of-living that could possibly reduce the graduate real wage relative to other groups and carry implications for measures of wage dispersion. This paper aims to reassess how estimates of wage inequality from 1997 to 2008 vary w...