Advanced Search
MyIDEAS: Login to save this article or follow this journal

Skill Levels and the Cyclical Variability of Employment, Hours, and Wages

Contents:

Author Info

  • Michael Keane

    (International Monetary Fund)

  • Eswar Prasad

    (International Monetary Fund)

Abstract

This paper uses microeconomic panel data to examine differences in the cyclical variability of employment, hours, and real wages for skilled and unskilled workers. Contrary to conventional wisdom, it finds that, at the aggregate level, skilled and unskilled workers are subject to the same degree of cyclical variation in wages. However, the quality of labor input is found to rise in recessions, inducing a countercyclical bias in aggregate measures of the real wage. The paper also finds substantial differences across industries in the cyclical variation of employment, hours, and wage differentials, indicating important interindustry differences in labor contracting.

Download Info

If 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.
File URL: http://www.jstor.org/stable/3867608?origin=pubexport
File Function: main text
Download Restriction: Access to full text is restricted to subscribers.

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 Info

Article provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.

Volume (Year): 40 (1993)
Issue (Month): 4 (December)
Pages: 711-743

as in new window
Handle: RePEc:pal:imfstp:v:40:y:1993:i:4:p:711-743

Contact details of provider:
Web page: http://www.palgrave-journals.com/

Order Information:
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
Email:
Web: http://www.palgrave-journals.com/pal/subscribe/index.html

Related research

Keywords:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Linda Goldberg & Joseph Tracy, 2001. "Exchange rates and wages," Staff Reports, Federal Reserve Bank of New York 116, Federal Reserve Bank of New York.
  2. Toshihiko Mukoyama & Aysegül Sahin, 2005. "The cost of business cycles for unskilled workers," Staff Reports, Federal Reserve Bank of New York 214, Federal Reserve Bank of New York.
  3. Pourpourides, Panayiotis M., 2007. "Implicit Contracts and the Cyclicality of the Skill-Premium," Cardiff Economics Working Papers, Cardiff University, Cardiff Business School, Economics Section E2007/19, Cardiff University, Cardiff Business School, Economics Section, revised Apr 2010.
  4. Christopher Otrok & Panayiotis M. Pourpourides, 2011. "On The Cyclicality of Real Wages and Wage Di¤erentials," Working Papers, Department of Economics, University of Missouri 1116, Department of Economics, University of Missouri.
  5. Kula, Ferit & Aslan, Alper, 2008. "Hysteresis vs. natural rate of unemployment: One, the other, or both?," MPRA Paper 14054, University Library of Munich, Germany.
  6. Balleer, Almut & van Rens, Thijs, 2011. "Skill-Biased Technological Change and the Business Cycle," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8410, C.E.P.R. Discussion Papers.
  7. Toshihiko Mukoyama & Aysegul Sahin, 2005. "Costs of Business Cycles for Unskilled Workers," Working Papers, Concordia University, Department of Economics 05002, Concordia University, Department of Economics.
  8. Humburg Martin & Grip Andries de & Velden Rolf van der, 2012. "Which skills protect graduates against a slack labour market?," ROA Research Memorandum, Maastricht University, Research Centre for Education and the Labour Market (ROA) 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  9. Otrok, Christopher & Pourpourides, Panayiotis M., 2008. "On The Cyclicality of Real Wages and Wage Differentials," Cardiff Economics Working Papers, Cardiff University, Cardiff Business School, Economics Section E2008/19, Cardiff University, Cardiff Business School, Economics Section, revised Mar 2009.
  10. Lindquist, Matthew J., 2002. "Capital-Skill Complementarity and Inequality Over the Business Cycle," Research Papers in Economics, Stockholm University, Department of Economics 2002:14, Stockholm University, Department of Economics, revised 01 Sep 2003.
  11. Ferit KULA & Alper ASLAN, 2014. "Unemployment Hysteresis in Turkey: Does Education Matter?," International Journal of Economics and Financial Issues, Econjournals, Econjournals, vol. 4(1), pages 35-39.
  12. Chang, Yongsung, 2000. "Wages, business cycles, and comparative advantage," Journal of Monetary Economics, Elsevier, Elsevier, vol. 46(1), pages 143-171, August.
  13. Manuel A. Hidalgo, 2008. "Wage Inequality in Spain, 1980-2000," Working Papers, Universidad Pablo de Olavide, Department of Economics 08.08, Universidad Pablo de Olavide, Department of Economics.
  14. Carlén, Björn, 2002. "Exclusionary Manipulation of Carbon Permit Markets: A Laboratory Test," Research Papers in Economics, Stockholm University, Department of Economics 2002:15, Stockholm University, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:40:y:1993:i:4:p:711-743. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).

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.