Welfare costs of sticky wages when effort can respond

• 成果类型: Article
• 署名作者: Bils, M; Chang, YS
• 署名单位: University of Rochester; National Bureau of Economic Research; University of Pennsylvania
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(03)00004-7
• 发表日期: 2003
• 页码: 311-330
• 关键词: sticky wage; endogenous effort; welfare cost

摘要

We examine the impact of wage stickiness when employment has an effort as well as hours dimension. Despite wages being predetermined, the labor market clears through the effort margin. Consequently, welfare costs of wage stickiness are potentially much, much smaller. (C) 2003 Elsevier Science B.V. All rights reserved.