000 01063nam a22001457a 4500
999 _c527086
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008 240802b ||||| |||| 00| 0 eng d
100 _aKudlyak, Marianna
_956180
245 _aHow cyclical is the user cost of labor?
260 _aThe Journal of Economic Perspectives
300 _a38(2), Spring, 2024: p.159-180
520 _aIn employment relationships, a wage is an installment payment on an implicit long-term agreement between a worker and a firm. The price of labor that impacts firm's hiring decisions, instead, reflects the hiring wage as well as the impact of economic conditions at the time of hiring on future wages. Measured by the labor's user cost, the price of labor is substantially more pro-cyclical than the new-hire wage or the average wage. The strong procyclicality of the price of labor calls for other forces for cyclical labor demand to explain employment fluctuations.- Reproduced https://www.aeaweb.org/articles?id=10.1257/jep.38.2.159
773 _aThe Journal of Economic Perspectives
906 _aLABOUR
942 _cAR