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Huang, Kevin X.D.,
Zheng Liu, and
Louis Phaneuf. 2004. "Why Does the Cyclical Behavior of Real Wages Change Over Time?."
,
94(4): 836-856.
Show Article Details
DOI: 10.1257/0002828042002552
Abstract:The cyclical behavior of real wages has evolved from mildly countercyclical during the interwar period to modestly procyclical in the postwar era. This paper presents a general-equilibrium business-cycle model that helps explain the evolution. In the model, changes in the real wage cyclicality arise from interactions between nominal wage and price rigidities and an evolving input-output structure.
Authors:
Huang, Kevin X.D.
Liu, Zheng
Phaneuf, Louis
JEL Classifications:
:
None
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