Title of article :
Labor marketdynamicsunderlong-termwagecontracting
Author/Authors :
Leena Rudanko، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2008
Abstract :
RecentresearchseekingtoexplainthestrongcyclicalityofUSunemployment
emphasizestheroleofwagerigidity.Thispaperproposesamicro-foundedmodelof
wagerigidity—an equilibriumbusinesscyclemodelofjobsearch,whereriskneutral
firmspostoptimallong-termcontractstoattractriskaverseworkers.Equilibrium
contractsfeaturewagesmoothing,limitedbytheinabilityofpartiestocommitto
contracts.Themodelisconsistentwithaggregatewagedataifneitherworkernorfirm
can commit,producingtoorigidwagesotherwise.Wagerigiditydoesnotleadtoa
substantialincreaseinthecyclicalvolatilityofunemployment
Keywords :
WagerigidityUnemploymentfluctuationsLong-term wagecontractsLimited commitmentDirectedsearch
Journal title :
Journal of Monetary Economics
Journal title :
Journal of Monetary Economics
