Publication
Dec 2010
In this paper, the author evaluates the quantitative implications of staggered wage bargaining as a way to introduce sticky wages into search and matching models while preserving individual rationality. The author compares the implications of how the sticky wages enter into the hiring decision, and finds that there seems to be a tradeoff between generating business cycle volatility and matching the lack of a long-run relationship between vacancy creation and inflation.
Download |
English (PDF, 39 pages, 1.0 MB) |
---|---|
Author | Christopher Phillip Reicher |
Series | Kiel Institute Working Papers |
Issue | 1674 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2010 Kiel Institute for the World Economy |