TY  - RPRT
        AU  - Martins, Pedro S.
AU  - Snell, Andy
AU  - Thomas, Jonathan P.
        TI  - Real and Nominal Wage Rigidity in a Model of Equal-Treatment Contracting
        PY  - 2009/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4346
        UR  - https://www.iza.org/index.php/publications/dp4346
        AB  - Following insights by Bewley (1999a), this paper analyses a model with downward rigidities in which firms cannot pay discriminate based on a year of entry to a firm, and develops an equilibrium model of wages and unemployment. We solve for the dynamics of wages and unemployment under conditions of downward wage rigidity, where forward looking firms take into account these constraints. Using simulated productivity data based on the post-war US economy, we analyse the ability of the model to match certain stylised labour market facts.
        KW  - cross-contract restrictions
KW  - labour contracts
KW  - business cycle
KW  - unemployment
KW  - equal treatment
KW  - downward rigidity
        ER  -