Working Paper
Magnification Effects and Acyclical Real Wages
An analysis of a one-period, two-sector model in which firms must pay a fixed cost of hiring. The authors show that this type of model results in more employment variability and less-procyclical wages than do models without fixed hiring costs.
Suggested Citation
Carlstrom, Charles T., and Edward Gamber. 1991. “Magnification Effects and Acyclical Real Wages.” Federal Reserve Bank of Cleveland, Working Paper No. 91-05. https://doi.org/10.26509/frbc-wp-199105
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