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Why Are Wages Smoother Than Productivity? An Industry-Level Analysis

Author

Listed:
  • Guillermo Ordonez

    (UCLA)

  • David Lagakos

    (UCLA)

Abstract

are match-specific than the skills of low-wage workers, and that job separation rates are lower for high-wage workers than low-wage workers. A calibrated version of the model accounts quite well for the facts at hand.

Suggested Citation

  • Guillermo Ordonez & David Lagakos, 2008. "Why Are Wages Smoother Than Productivity? An Industry-Level Analysis," 2008 Meeting Papers 936, Society for Economic Dynamics.
    • Handle: RePEc:red:sed008:936
    as

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    References listed on IDEAS

    as
    1. Carrington, William J & Zaman, Asad, 1994. "Interindustry Variation in the Costs of Job Displacement," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 243-275, April.
    2. Steven J. Davis & R. Jason Faberman & John Haltiwanger, 2006. "The Flow Approach to Labor Markets: New Data Sources and Micro-Macro Links," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 3-26, Summer.
    3. Martin Neil Baily, 1974. "Wages and Employment under Uncertain Demand," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(1), pages 37-50.
    4. Azariadis, Costas, 1975. "Implicit Contracts and Underemployment Equilibria," Journal of Political Economy, University of Chicago Press, vol. 83(6), pages 1183-1202, December.
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    Cited by:

    1. Pourpourides, Panayiotis M., 2011. "Implicit contracts and the cyclicality of the skill-premium," Journal of Economic Dynamics and Control, Elsevier, vol. 35(6), pages 963-979, June.

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