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Workers' Flows and Real Wage Cyclicality Author info | Abstract | Publisher info | Download info | Related research | Statistics Anabela Carneiro () (CETE, Faculdade de Economia, Universidade do Porto)
Pedro Portugal () (Banco de Portugal and Universidade Nova de Lisboa)
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This study investigates real wage cyclicality in Portugal for the years of 1986-98, adressing the heterogeneity in wages responses to aggregate labor market conditions for workers' hirings and separations. The results exhibit a moderate procyclical behavior of real wages for continuously employed workers, in particular, for job stayers. For workers' accessions a strongly procyclical behavior in wages was observed, which is consistent with the idea that entry wages are much more procyclical than current wages. This empirical evidence suggests that even micro-data estimates of real wage cyclicality may conceal a strong procyclical wage behavior, when heterogeneity on wages responses to aggregate conditions between employed workers and hirings and separations is not taken into account.
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Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series CETE Discussion Papers with number
0402.
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Length: 49 pages
Date of creation: May 2004Date of revision:
Handle: RePEc:por:cetedp:0402Contact details of provider: Postal: Rua Dr. Roberto Frias, 4200 PORTO Phone: 351-22-5571100 Fax: 351-22-5505050 Email: Web page: http://www.fep.up.pt/ More information through EDIRC
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Keywords: Wage cyclicality hirings separations Other versions of this item:
Find related papers by JEL classification: J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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Christopher A. Pissarides, 2007.
"The Unemployment Volatility Puzzle: Is Wage Stickiness the Answer? ,"
CEP Discussion Papers
dp0839, Centre for Economic Performance, LSE.
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Pedro S. Martins, 2007.
"Heterogeneity in Real Wage Cyclicality ,"
IZA Discussion Papers
2929, Institute for the Study of Labor (IZA).
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