Journal Article

Staggered Wages, Sticky Prices, and Labor Market Dynamics in Matching Models


  • Neugebauer
  • J.
  • Wesselbaum
  • D.
Publication Date

This paper estimates a search and matching model using Bayesian methods. We deviate from the existing literature in two ways. First, we provide a cross-country analysis by estimating the model for the United States and Australia. We document differences in structural parameters and key driving forces of business cycle fluctuations. Second, we find that staggered wages rather than sticky prices matter to fit the data.


JEL Classification
E24, E32, J64

Key Words

  • search and matching
  • Staggered Wages
  • sticky prices