Replication data for: Measuring What Employers Do about Entry Wages over the Business Cycle: A New Approach

Principal Investigator(s): View help for Principal Investigator(s) Pedro S. Martins; Gary Solon; Jonathan P. Thomas

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Project Citation:

Martins, Pedro S., Solon, Gary, and Thomas, Jonathan P. Replication data for: Measuring What Employers Do about Entry Wages over the Business Cycle: A New Approach. Nashville, TN: American Economic Association [publisher], 2012. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114256V1

Project Description

Summary: Rigidity in real hiring wages plays a crucial role in some recent macroeconomic models. But are hiring wages really so noncyclical? We propose using employer/employee longitudinal data to track the cyclical variation in the wages paid to workers newly hired into specific entry jobs. Illustrating the methodology with 1982-2008 data from the Portuguese census of employers, we find real entry wages were about 1.8 percent higher when the unemployment rate was 1 percentage point lower. Like most recent evidence on other aspects of wage cyclicality, our results suggest that the cyclical elasticity of wages is similar to that of employment. (JEL E24, E32, J31, J64)

Scope of Project

JEL Classification:
      E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      E32 Business Fluctuations; Cycles
      J31 Wage Level and Structure; Wage Differentials
      J64 Unemployment: Models, Duration, Incidence, and Job Search

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Published Versions

V1 [2019-10-12]

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