Arbeitspapier

Wage cyclicalities and labor market dynamics at the establishment level: Theory and evidence

This paper analyzes the effects of different wage cyclicalities on labor market flow dynamics at the establishment level. We derive a model that allows for heterogeneous wage cyclicalities across firms over the business cycle and confront the theoretical results with the new AWFP dataset, which comprises the entire universe of German establishments. In line with theory, establishments with more procyclical wage movements over the business cycle have a more countercyclical hires rate and employment behavior. This result is robust when we look at certain sectors and states. Wage cyclicalities do not only have the expected qualitative impact on stocks and flows, but the quantitative responses are also in line with the proposed model. More generally, our empirical results provide support for theories that lead to an effect of wage rigidities on labor market flow dynamics.

Sprache
Englisch

Erschienen in
Series: FAU Discussion Papers in Economics ; No. 12/2016

Klassifikation
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Business Fluctuations; Cycles
Unemployment: Models, Duration, Incidence, and Job Search
Thema
Labor Market Flows
Wages
Administrative Data
Establishment
Matches

Ereignis
Geistige Schöpfung
(wer)
Merkl, Christian
Stüber, Heiko
Ereignis
Veröffentlichung
(wer)
Friedrich-Alexander-Universität Erlangen-Nürnberg, Institute for Economics
(wo)
Nürnberg
(wann)
2016

Handle
Letzte Aktualisierung
20.09.2024, 08:23 MESZ

Datenpartner

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Merkl, Christian
  • Stüber, Heiko
  • Friedrich-Alexander-Universität Erlangen-Nürnberg, Institute for Economics

Entstanden

  • 2016

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