J3 - Wages, Compensation, and Labor Costs

• Schooling, Inequality and Government Policy

  Staff Working Paper 2007-12 Oleksiy Kryvtsov, Alexander Ueberfeldt

  This paper asks: What is the effect of government policy on output and inequality in an environment with education and labor-supply decisions? The answer is given in a general equilibrium model, consistent with the post 1960s facts on male wage inequality and labor supply in the U.S. In the model, education and labor-supply decisions depend on progressive income taxation, the education system, the social security system, and technology-driven wage differentials.

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets, Potential output, Productivity JEL Code(s): H, H5, H52, J, J3, J31, J38

• Educational Spillovers: Does One Size Fit All?

  Staff Working Paper 2005-10 Robert Baumann, Raphael Solomon

  In a search model of production, where agents accumulate heterogeneous amounts of human capital, an individual worker's wage depends on average human capital in the searching population.

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets JEL Code(s): I, I2, I29, J, J2, J24, J3, J31

• Self-Enforcing Labour Contracts and the Dynamics Puzzle

  Staff Working Paper 2005-1 Christian Calmès

  To properly account for the dynamics of key macroeconomic variables, researchers incorporate various internal-propagation mechanisms in their models.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models, Labour markets JEL Code(s): E, E1, E12, E4, E49, J, J3, J30, J31, J4, J41

• Poignée de main invisible et persistance des cycles économiques : une revue de la littérature

  Staff Working Paper 2003-40 Christian Calmès

  The author explains how self-enforcing labour contracts can enhance the performance of macroeconomic models. He exposes the benefits of using these dynamic contracts to account for some puzzling macroeconomic facts regarding the dynamics and persistence of employment, consumption and output.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models JEL Code(s): E, E1, E12, E4, E49, J, J3, J30, J31, J4, J41

• Technological Change and the Education Premium in Canada: Sectoral Evidence

  Staff Working Paper 2003-18 Jean Farès, Terence Yuen

  It has been well documented that the education premium measured by the wage difference between university and high school graduates has remained constant over the past two decades in Canada. Despite this stable pattern at the aggregate level, skill-biased technology could have important implications for the inter-industry wage structure.

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets JEL Code(s): J, J3, J31, O, O3, O30

• Does Micro Evidence Support the Wage Phillips Curve in Canada?

  Staff Working Paper 2002-4 Jean Farès

  The existing macroeconometric evidence lends support to the wage Phillips curve by showing a negative relation between the rate of change in wages and the unemployment rate, conditional on lagged price inflation. Most theoretical models of wage setting, however, generate a "wage curve," described by a negative relation between the level of the real wage and unemployment.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices JEL Code(s): J, J3, J31

• Employment Effects Of Nominal-Wage Rigidity: An Examination Using Wage-Settlements Data

  Staff Working Paper 2000-14 Umar Faruqui

  The argument advocating a moderate level of inflation based on the downward nominal-wage rigidity (DNWR) hypothesis rests on three factors: its presence, extent, and negative impact in the labour market. This paper focuses on the employment effect of DNWR.

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets JEL Code(s): C, C2, C23, J, J2, J23, J3, J30

• The Employment Costs of Downward Nominal-Wage Rigidity

  Staff Working Paper 2000-1 Jean Farès, Seamus Hogan

  In this paper, we use firm-level wage and employment data to address whether there is evidence of downward nominal-wage rigidity, and whether that rigidity is associated with a reduction in employment. We describe an estimation bias that can result when estimating reduced-form wage and employment equations and suggest a way of controlling for that bias. […]

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets JEL Code(s): C, C3, C33, J, J2, J23, J3, J31