This paper investigates wage dynamics assuming the potential presence of dual wage stickiness: with respect to both the frequency as well as the size of wage adjustments. In particular, this paper proposes a structural model of wage inflation dynamics assuming that although workers adjust wage contracts at discrete time intervals, they are limited in their abilities to adjust wages as much as t...

Social Comparison and Performance: Experimental Evidence on the Fair Wage-Effort Hypothesis We investigate the impact of wage comparisons for worker productivity. We present three studies which all use three-person gift-exchange experiments. Consistent with Akerlof and Yellen’s (1990) fair wage-effort hypothesis we find that disadvantageous wage discrimination leads to lower efforts while advan...

This article analyses the relationship between government spending and the distribution of private income between capital and labour. While most previous research assumes that government spending redistributes in favour of the less wealthy, I distinguish between types of expenditures that enhance the bargaining position of labour - that is, unemployment benefits, public sector employment and in...

The tertiarization, or perhaps more accurately, the deindustrialization of the economy has left deep scars on cities. It is evident not only in the industrial wastelands and empty factory buildings scattered throughout the urban landscape, but also in the income and social structures of cities. Industrialization, collective wage setting and the welfare state led to a stark reduction in income d...

A Contribution to the Empirics of Reservation Wages This paper provides evidence on the behavior of reservation wages over the spell of unemployment using high‐frequency longitudinal data. Using data from our survey of unemployed workers in New Jersey, where workers were interviewed each week for up to 24 weeks, we find that self‐reported reservation wages decline at a modest rate over the spel...

In a stock-flow consistent neo-Kaleckian macro-model, along with worker households' debt dynamics, we incorporate distributional dynamics and examine the dynamic stability of economy in long-run. Both wage-led profit-led but debt-burdened demand growth regimes are possible short-run We show that interaction between may lead to instability economy. find rise targeted profit share firms or an inc...

The Effects of the State Sector on Wage Inequality in Urban China: 1988–2007 This paper examines the effects of state sector domination on wage inequality in urban China. Using Chinese Household Income Project surveys, we conduct two exercises: with quantile regression analysis, we identify wage gaps across the distribution and over time; and we employ the Machado and Mata (2005) decomposition ...