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http://hdl.handle.net/10419/45871
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| Title: | | Evaluating the search and matching model with sticky wages  |
| Authors: | | Reicher, Christopher Phillip |
| Issue Date: | | 2010 |
| Series/Report no.: | | Kiel Working Papers 1674 |
| Abstract: | | Several authors have proposed staggered wage bargaining as a way to introduce sticky wages into search and matching models while preserving individual rationality. I evaluate the quantitative implications of such an approach. I feed through a series of estimated shocks from US data into a search and matching model with sticky prices and wages. I compare the implications of how the sticky wages enter into the hiring decision, and there seems to be a tradeoff between generating business cycle volatility and matching the lack of a long-run relationship between vacancy creation and inflation. With regard to wages, the sticky wage model unconditionally does a better job at matching wages than the flexible wage model. |
| Subjects: | | Sticky wages sticky prices staggered Nash bargaining inflation new hires search and matching business cycles |
| JEL: | | E24 E25 E32 J23 J31 J63 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Kieler Arbeitspapiere, IfW
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