SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Macro midterm spring

» Start this Course
(Practice similar questions for free)
Question:

Aggregate data is bad to use because it averages everything out and the results are that real wage is cyclical or moderately pro-cyclical. It ignores how lower skilled workers are more cyclical versus high skilled workers. Study done by Solon, Barksy, and Parker use panel data which predicts that real wages are 2 times as pro cyclical on individual level compared to aggregate.

Author: Daniel Ortega



Answer:

Empirical Evidence of cyclical nature of real wages


0 / 5  (0 ratings)

1 answer(s) in total