Wage Cyclicality and Labor Market Sorting

Wage Rigidity and Labor Market Dynamics with Sorting ∗

This paper adds two-sided ex ante heterogeneity and a production technology inducing sorting to the canonical Diamond-Mortensen-Pissarides (DMP) search and matching model. This modification considerably improves the model’s empirical performance. Due to assortative matching, match-specific wages are non-monotonous in firm type, as illustrated by Eeckhout and Kircher (2011); that is, an optimal,...

Cyclicality and the Labor Market for Economists

Cyclicality and the Labor Market for Economists Using a unique sample of new Ph.D. economists in 1987 and 1997, we examine how job seekers and their employers alter their search strategies in strong versus weak markets. The 1987 academic market was strong while the 1997 market was much weaker. A multimarket theory of optimal search suggests that job seekers will respond to a weakening market by...

Immigration, Labor Market and Wage Inequality

Real Wage Cyclicality in Italy

Real Wage Cyclicality in Italy This paper analyzes the cyclical behaviour of male real wages in Italy using the European Community Household Panel 1994-2001. We distinguish between job stayers (remaining in the same job), and withinand between-company job movers. Stayers are the large majority. We find stayers in Northern Italy to have high cyclicality of real wages, higher in fact than the US ...

Heterogeneity in Real Wage Cyclicality

Heterogeneity in Real Wage Cyclicality This paper presents evidence that real wage cyclicality can be a particularly heterogeneous parameter, depending on different worker characteristics and also on the specific stage of the business cycle. Using matched employer-employee panel data for Portugal covering the period 1986-2004, real wages are shown to be considerably more procyclical during rece...