Publication
Mar 2009
This paper examines wage rigidity and job creation and compares dominant assumptions and theories to data. The authors argue that wages are rigid in ongoing jobs but flexible at the start of new jobs. This form of wage rigidity, the authors conclude, does not affect job creation and thus cannot explain the unemployment volatility puzzle.
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English (PDF, 44 pages, 664 KB) |
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Author | Christian Haefke, Marcus Sonntag, Thijs van Rens |
Series | Kiel Institute Working Papers |
Issue | 1504 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2009 Kiel Institute for the World Economy |