Working Paper Revision
What Can We Learn from Asynchronous Wage Changes?
Abstract: I document eight novel facts about wage changes and provide a theoretical framework to rationalize them. I then illustrate how this new treatment of data and theoretical framework speak to important secular and cyclical features of the macroeconomy. The evidence put forth in this paper, suggests that a theory of wage setting in which wages respond to idiosyncratic competition is an important complement to the more conventional macroeconomic view in which wage rigidity is induced by deliberately divorcing the timing of wage changes from innovations in firms' and workers' opportunities.
Keywords: Labor Contracts; Wage Changes; Job Ladder;
JEL Classification: E24; J33; M52; J41; M55;
https://doi.org/10.17016/FEDS.2021.055r1
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File(s): File format is application/pdf https://www.federalreserve.gov/econres/feds/files/2021055r1pap.pdf
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Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: Finance and Economics Discussion Series
Publication Date: 2022-03-31
Number: 2021-055r1
Related Works
- Working Paper Revision (2022-03-31) : You are here.
- Working Paper Original (2021-08-12) : What Can We Learn from Idiosyncratic Wage Changes?