Publisher:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft, Kiel, Hamburg
Abstract:
The paper analyzes the effects of different wage cyclicalities on labor market flow dynamics. 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. Establishments with more procyclical wage movements over the business cycle have a more countercyclical hires rate. The quantitative responses are in line with the proposed model.
