• Title of article

    The businesscycleimplicationsofreciprocityinlaborrelations

  • Author/Authors

    Jean-Pierre Danthine، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2010
  • Pages
    14
  • From page
    837
  • To page
    850
  • Abstract
    A reciprocity-basedmodelofwagedeterminationisincorporatedintoamodern dynamicgeneralequilibriumframeworkandestimatedonU.S.data.Theestimation revealsthatrent-sharing(betweenworkersandfirms)andwageentitlement(basedon past wages)areimportantdeterminantsofwagesettingforthemodeltofitthe dynamicresponsesofoutput,wagesandinflationtovariousexogenousshocks. Aggregateemploymentconditions(measuringworkers’outsideoption),ontheother hand, arefoundtoplayonlyanegligibleroleforwagesetting.Theseresultsare consistentwithmicro-studiesonreciprocityinlaborrelationsbutcontrastwith traditionalefficiencywagemodelswhichemphasizeaggregatelabormarketvariables as thedeterminantsofwagesetting
  • Journal title
    Journal of Monetary Economics
  • Serial Year
    2010
  • Journal title
    Journal of Monetary Economics
  • Record number

    846432