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Magnification effects and acyclical real wages

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Author Info
Charles T. Carlstrom
Edward N. Gamber

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Abstract

An analysis of a one-period, two-sector model in which firms must pay a fixed cost of hiring. The authors show that this type of model results in more employment variability and less-procyclical wages than do models without fixed hiring costs.

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File URL: http://www.clevelandfed.org/research/Workpaper/1991/wp9105.pdf
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Paper provided by Federal Reserve Bank of Cleveland in its series Working Paper with number 9105.

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Date of creation: 1991
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Handle: RePEc:fip:fedcwp:9105

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Keywords: Business cycles ; Wages ; Employment (Economic theory);

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Chatterjee, S. & Cooper, R., 1988. "Multiplicity Of Equilibria And Fluctuations In An Imperfectly Competitive Economy With Entry And Exit," Papers e-88-25, Stanford - Hoover Institution.
  2. Loungani, Prakash & Rogerson, Richard, 1989. "Cyclical fluctuations and sectoral reallocation : Evidence from the PSID," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 259-273, March. [Downloadable!] (restricted)
  3. Robert J. Barro, 1989. "New Classicals and Keynesians, or the Good Guys and the Bad Guys," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 125(III), pages 263-273, September. [Downloadable!]
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  4. Lilien, David M, 1982. "Sectoral Shifts and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 777-93, August. [Downloadable!] (restricted)
  5. Cooper, Russell & John, Andrew, 1988. "Coordinating Coordination Failures in Keynesian Models," The Quarterly Journal of Economics, MIT Press, vol. 103(3), pages 441-63, August. [Downloadable!] (restricted)
  6. Cho, Jang-Ok & Rogerson, Richard, 1988. "Family labor supply and aggregate fluctuations," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 233-245. [Downloadable!] (restricted)
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This page was last updated on 2009-12-31.

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