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Wage Cyclicality and Labor Market Sorting: Comment

Author

Listed:
  • Hartley, Jonathan S.
  • Olson, Matthew A.

Abstract

Figueiredo (2022) examines wage cyclicality across the skill mismatch distribution finding large differences. Some key results include finding that wages are acyclical in good labor market matches but procyclical in poor matches. Using the public replication material provided by the authors, we were able to exactly duplicate the results of the study. Further, using several further robustness checks, such as subtracting (potentially correlated) covariates in the regressions, using different standard errors (rather than clustered ones), or different time periods of the data left the key results largely unchanged with some minor caveats.

Suggested Citation

  • Hartley, Jonathan S. & Olson, Matthew A., 2023. "Wage Cyclicality and Labor Market Sorting: Comment," I4R Discussion Paper Series 78, The Institute for Replication (I4R).
    • Handle: RePEc:zbw:i4rdps:78
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    References listed on IDEAS

    as
    1. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, vol. 95(1), pages 25-49, March.
    2. Fatih Guvenen & Burhan Kuruscu & Satoshi Tanaka & David Wiczer, 2020. "Multidimensional Skill Mismatch," American Economic Journal: Macroeconomics, American Economic Association, vol. 12(1), pages 210-244, January.
    3. Ana Figueiredo, 2022. "Wage Cyclicality and Labor Market Sorting," American Economic Review: Insights, American Economic Association, vol. 4(4), pages 425-442, December.
    4. Robert E. Hall, 2005. "Employment Fluctuations with Equilibrium Wage Stickiness," American Economic Review, American Economic Association, vol. 95(1), pages 50-65, March.
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