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Wage Cyclicalities and Labor Market Dynamics at the Establishment Level: Theory and Evidence

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  • Merkl, Christian
  • Stüber, Heiko

Abstract

The paper analyzes the effects of different wage cyclicalities on labor market flow dynamics. We derive a model that allows for heterogeneous wage cyclicalities across firms over the business cycle and confront the theoretical results with the new AWFP dataset. Establishments with more procyclical wage movements over the business cycle have a more countercyclical hires rate. The quantitative responses are in line with the proposed model.

Suggested Citation

  • Merkl, Christian & Stüber, Heiko, 2017. "Wage Cyclicalities and Labor Market Dynamics at the Establishment Level: Theory and Evidence," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168129, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc17:168129
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    Cited by:

    1. Bachmann, Rüdiger & Bayer, Christian & Merkl, Christian & Seth, Stefan & Stüber, Heiko & Wellschmied, Felix, 2017. "Worker Churn and Employment Growth at the Establishment Level," IZA Discussion Papers 11063, Institute of Labor Economics (IZA).
    2. Christian Merkl & Heiko Stüber, 2019. "Value added, wages and labour market flows at the establishment level," Applied Economics Letters, Taylor & Francis Journals, vol. 26(2), pages 135-142, January.
    3. Bachmann, Rüdiger & Bayer, Christian & Merkl, Christian & Seth, Stefan & Stüber, Heiko & Wellschmied, Felix, 2017. "Job and worker flows: New stylized facts for Germany," FAU Discussion Papers in Economics 02/2017, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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