The Cyclicality of Real Wages and Wage Differentials: A Dynamic Factor Analysis
Otrok, Christopher, Pourpourides, Panayiotis M.
Using longitudinal microdata we implement a Bayesian dynamic latent factor model to analyze the cyclical properties of real wages. Contrary to previous econometric models our model does not impose an...
Implicit Contracts, Wages and Wage Inequality over the Business Cycle
Despite the success of Walrasian equilibrium models in explaining economic growth facts they fail to simultaneously account for the cyclical behavior of wages and the skill-premium. In this paper, I...