Wage Flexibility and Employment Fluctuations
Evidence from the Housing Sector
Bibliographic Data
| ID | 9722650 |
|---|---|
| Authors | Jorn‐steffen Pischke (0000-0002-6466-1874, London School of Economics and Political Science, corresponding author) |
| Year | 2018 |
| Volume | 85 |
| Issue | 339 |
| Pages | 407-427 |
| Publication date | 2018-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ecca.12263 |
| OpenAlex | W2480352924 |
| Language | EN |
| Citations received | 1 |
| References cited | 17 |
Many economists suspect that downward nominal wage rigidities in ongoing labour contracts are an important source of employment fluctuations over the business cycle, but there is little direct empirical evidence on this conjecture. This paper compares three occupations in the housing sector with very different wage setting institutions: real estate agents, architects and construction workers. I study the wage and employment responses of these occupations to the housing cycle, a proxy for labour demand shocks to the industry. The employment of real estate agents, whose pay is far more flexible than the other occupations, indeed reacts less to the cycle than employment in the other occupations, although specific estimates are noisy. I show that the aggregate implications of the estimates depend also on the aggregate labour demand elasticity, which captures how easily laid off workers can find employment in alternative sectors
Business cycle · Demand shock · Economics · Efficiency wage · Flexibility (engineering) · Labor demand · Labour economics · Macroeconomics · Monetary economics · Proxy (statistics) · Real estate · Real wages · Wage · Finance · Housing Market and Economics · Labor market dynamics and wage inequality
Labor Demand
The Wage Policy of a Firm
Why Have Housing Prices Gone Up?
Measuring the Cyclicality of Real Wages
Asymmetries and Rigidities in Wage Adjustments by Firms
Housing supply and housing bubbles
Can Free Entry Be Inefficient? Fixed Commissions and Social Waste in the Real Estate Industry
The Effect of Implicit Contracts on the Movement of Wages Over the Business Cycle
How Wages Change
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,25 |
| Citation span | 2022 - 2022 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |