TY  - RPRT
        AU  - Merkl, Christian
AU  - Stüber, Heiko
        TI  - Wage Cyclicalities and Labor Market Dynamics at the Establishment Level: Theory and Evidence
        PY  - 2017/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11051
        UR  - https://www.iza.org/publications/dp11051
        AB  - Using the new AWFP dataset that covers all German establishments, we document a substantial cross-sectional heterogeneity of establishments' average real wages over the business cycle. While the median establishments' real wages are procyclical, there is a large fraction of establishments with countercyclical real wages. We are the first to show that establishments with more procyclical wages have a less procyclical hires rate and employment behavior. We propose a labor market flow model that is able to replicate these facts and thereby allows us to run counterfactual exercises. When we set the wage cyclicalities of all establishments to the one of the most procyclical establishments, labor market volatilities drop by more than 50 percent.
        KW  - wage cyclicality
KW  - labor market flow model
KW  - labor market dynamics
KW  - establishments
KW  - administrative data
KW  - job and worker flows
        ER  -