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Title: Real Wages over the Business Cycle: Evidence from Panel Data
Resulting in 1 citation.
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Bils, Mark J. |
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Real Wages over the Business Cycle: Evidence from Panel Data Journal of Political Economy 93,4 (August 1985): 666-689. Also: http://www.jstor.org/stable/1832132 Cohort(s): Young Men Publisher: University of Chicago Press Keyword(s): Behavior; Business Cycles; Unemployment Rate; Wages The cyclical behavior of real wages has been the subject of numerous studies, most of which used aggregated time-series data. In contrast, the present analysis employs disaggregated, panel data from a pooled sample of the Young Men. Using these data, a pooled time-series, cross-sectional model is estimated in which changes in real wages are related to changes in the national unemployment rate. Analysis reveals real wages to be very procyclical. A percentage point decline in the unemployment rate is associated with a rise in real wages of 1.5%- 2%. Averaging over a cyclically changing labor force is found to countercyclically bias the real wage, although the effect is not large. Disaggregation also shows that real wages behave very differently across individuals. |
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Bibliography Citation
Bils, Mark J. "Real Wages over the Business Cycle: Evidence from Panel Data." Journal of Political Economy 93,4 (August 1985): 666-689.
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