Seminar Series “Macroeconomics and Labor Markets” on 7 November 2023
We are pleased to invite you to the seminar series on “Macroeconomics and Labor Markets“ organized by the Chair of Macroeconomics at the Friedrich-Alexander University Erlangen-Nuremberg, Prof. Merkl, the Chair of Global Governance and International Trade at the Friedrich-Alexander University Erlangen-Nuremberg, Prof. Moser, and the Competence Field Macroeconomics of the Institute for Employment Research (IAB). Researchers of both institutions, as well as national and international guests, present their current work at the intersection of labor- and macroeconomics.
The next seminar will be held on Tuesday, November 7, 12 noon to 1.30 pm (German time), in room E10 at the IAB (Regensburger Str. 100).
Online participation is possible via Skype Business.
Isabel Gödl-Hanisch (LMU) will talk about “Wage Setting in Times of High and Low Inflation”.
The recent surge in inflation led many unions and firms to alter their bargaining and wage-setting policies. Using novel German firm-level survey data, we document the extent of state dependency of wage-setting behavior across firms and workers given high vs. low inflation environments. The granularity of our micro-level data also allows us to study heterogeneous patterns across sectors, firms, and workers. Embedding the empirical findings in a New Keynesian model with heterogeneous firms, we then analyze the implications of state-dependent wage-setting behavior for the transmission and propagation of shocks. Lastly, we discuss the interaction of state-dependent wage setting with firms’ monopsony power and how these features impact monetary policy and the slope of the Phillips curve.