NDLI: Real earnings and business cycles: new evidence

Content Provider	Springer Nature Link
Author	Hart, Robert A. Malley, James R. Woitek, Ulrich
Copyright Year	2008
Abstract	In the time domain, the observed cyclical behavior of the real wage hides a range of economic influences that give rise to cycles of differing lengths and strengths. This may serve to produce a distorted picture of wage cyclicality. Here, we employ frequency domain methods that allow us to assess the relative contribution of cyclical frequency bands on real wage earnings. Earnings are decomposed into standard and overtime components. We also distinguish between consumption and production wages. Frequency domain analysis is carried out in relation to wages alone and to wages in relation to output and employment cycles. Our univariate analysis suggests that, in general, the dominant cycle followed by output, employment, real consumer and producer wages and their components is 5–7 years. Consistent with previous findings reported in the macro-level literature, our bi-variate results show that the various measures of the wage are generally not linked to the employment cycle. However, and in sharp contrast with previous macro-level studies we find strong procyclical links between the consumer wage and its overtime components and the output cycle, especially at the 5–7 years frequency. Observed real wages are not constant over the cycle, but neither do they exhibit consistent pro- or counter-cyclical movements. This suggests that any attempt to assign systematic real wage movements a central role in an explanation of business cycles is doomed to failure. (lucas 1977)
Starting Page	51
Ending Page	71
Page Count	21
File Format	PDF
ISSN	03777332
Journal	Empirical Economics
Volume Number	37
Issue Number	1
e-ISSN	14358921
Language	English
Publisher	Springer-Verlag
Publisher Date	2008-08-30
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Business cycles Real wages Co-movement Spectral analysis Statistics for Business/Economics/Mathematical Finance/Insurance Economic Theory Economics general Econometrics
Content Type	Text
Resource Type	Article
Subject	Statistics and Probability Social Sciences Economics and Econometrics

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

Self-selection bias in estimated wage premiums for earnings risk

The effect of computer use on earnings in Italy

Dynamic employment adjustments over business cycles

Determinants of business cycles in small scale macroeconomic models: the German case

Q-theory of investment and earnings retentions—evidence from Scandinavia

Real-time forecasting US GDP from small-scale factor models

Ex ante forecasts of business-cycle turning points

Changing American earnings distributions: One-half century of experience

Countercyclical or procyclical real wages? A disaggregate explanation of aggregate asymmetry

Real earnings and business cycles: new evidence

Similar Documents

Self-selection bias in estimated wage premiums for earnings risk

The effect of computer use on earnings in Italy

Dynamic employment adjustments over business cycles

Determinants of business cycles in small scale macroeconomic models: the German case

Q-theory of investment and earnings retentions—evidence from Scandinavia

Real-time forecasting US GDP from small-scale factor models

Ex ante forecasts of business-cycle turning points

Changing American earnings distributions: One-half century of experience

Countercyclical or procyclical real wages? A disaggregate explanation of aggregate asymmetry

Real earnings and business cycles: new evidence