How do inflation expectations affect the job search behavior of workers when wages are set
in nominal terms? A canonical job search model incorporating nominal wage rigidities …

In this paper, we develop a model that combines elements of modern macro labor theories
with nominal wage rigidities to study the consequences of unexpected inflation on the labor …

We study how firms adjust labor in response to adverse shocks—via layoffs or pay cuts—
and the reasons behind each adjustment margin. To do so, we design and implement a …

We develop a time series of quits and layoffs using the Current Population Survey, and
analyze their relationship with labor supply decisions over the business cycle. Our findings …

This paper studies the impact of downward wage rigidity on wage and employment
dynamics after the outbreak of major recessions in Spain. Downward wage rigidity stems …

What are the costs of inflation in the labor market? When wages are set nominally, inflation
leads to reduced purchasing power, which prompts workers to search for other jobs in order …

We present a model in which efficient long-term employment relationships are sustained by
wage adjustments prompted by productivity shocks and outside job offers. These wage …

How do the employer and the worker interact during a dismissal? This paper tests whether
they cooperate to minimize costs, or instead engage in conflict—ie, deliberately amplify …

We introduce dynamic incentive contracts into a model of unemployment dynamics and
present three results. First, wage cyclicality from incentives does not dampen unemployment …

We study the positive and normative implications for inflation of employer-to-employer (EE)
worker transitions by developing a heterogeneous agent New Keynesian model featuring a …