Working Paper

Magnification effects and acyclical real wages


Abstract: An analysis of a one-period, two-sector model in which firms must pay a fixed cost of hiring. The authors show that this type of model results in more employment variability and less-procyclical wages than do models without fixed hiring costs.

Keywords: Business cycles; Wages; Employment (Economic theory);

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers (Old Series)

Publication Date: 1991

Number: 9105