Nominal-Contracting Theories of Unemployment: Evidence from Panel Data
AbstractThis paper examines economywide and sector-specific responses of real wages to nominal shocks using micro panel data from the National Longitudinal Survey of Young Men. The observed response patterns provide no support for nominal-contracting theories of unemployment, which predict that nominal surprises should be negatively correlated with real wages. In fact, both inflation and money-growth surprises are found to be essentially uncorrelated with real wages. Either a real-business-cycle model or a model with rigidities in commodity prices could be consistent with these results. Copyright 1993 by American Economic Association.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 83 (1993)
Issue (Month): 4 (September)
Other versions of this item:
- Michael P. Keane, 1990. "Nominal contracting theories of unemployment: evidence from panel data," Discussion Paper / Institute for Empirical Macroeconomics 27, Federal Reserve Bank of Minneapolis.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Guangjie Ning, 2008. "Wage forming mechanism in the market transitional process of China (1993–2005): Evidence from the provincial panel data," Psychometrika, Springer, vol. 3(2), pages 312-326, June.
- Peter Gottschalk, 2005.
"Downward Nominal-Wage Flexibility: Real or Measurement Error?,"
The Review of Economics and Statistics,
MIT Press, vol. 87(3), pages 556-568, August.
- Peter Gottschalk, 2002. "Downward nominal wage flexibility: real or measurement error?," Boston College Working Papers in Economics 534, Boston College Department of Economics.
- Peter Gottschalk, 2004. "Downward Nominal Wage Flexibility: Real or Measurement Error?," Boston College Working Papers in Economics 611, Boston College Department of Economics.
- Gottschalk, Peter T., 2004. "Downward Nominal Wage Flexibility: Real or Measurement Error?," IZA Discussion Papers 1327, Institute for the Study of Labor (IZA).
- Jovanic, Boyan & Ueda, Masako, 1997.
"Contracts and Money,"
Journal of Political Economy,
University of Chicago Press, vol. 105(4), pages 700-708, August.
- Keane, Michael, 2010. "The Tax-Transfer System and Labour Supply," MPRA Paper 55167, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.