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For more than 80 years, many macroeconomic analyses have been premised on the assumption that workers' nominal wage rates cannot be cut. The U.S. evidence on this assumption has been inconclusive because of distortions from reporting error in household surveys. Following a British literature, we reconsider the issue with more accurate wage data from the payroll records of most employers in the State of Washington over the period 2005-2015. For every one of the 40 four-quarters-apart periods for which we observe year-to-year wage changes, we find that at least 20 percent of job stayers experience nominal wage reductions.

Multigenerational mobility refers to the associations in socioeconomic status across three or more generations. This article begins by summarising the longstanding but recently growing empirical literature on multigenerational mobility. It then discusses multiple theoretical interpretations of the empirical patterns, including the one recently proposed in Gregory Clark's book The Son Also Rises.

In models recently published by several influential macroeconomic theorists, rigidity in the real wages that firms pay newly hired workers plays a crucial role in generating realistically large cyclical fluctuations in unemployment. There is remarkably little evidence, however, on whether employers' hiring wages really are invariant to business cycle conditions. We review the small empirical literature and show that the methods used thus far are poorly suited for identifying employers’ wage practices. We propose a simpler and more relevant approach – use matched employer/employee longitudinal data to identify entry jobs and then directly track the cyclical variation in the real wages paid to workers newly hired into those jobs. We illustrate the methodology by applying it to data from an annual census of employers in Portugal over the period 1982-2007. We find that real entry wages in Portugal over this period tend to be about 1.8 percent higher when the unemployment rate is one percentage point lower. Like most recent evidence on other aspects of wage cyclicality, our results suggest that the cyclical elasticity of wages is similar to that of employment.

In models recently published by several influential macroeconomic theorists, rigidity in the real wages that firms pay newly hired workers plays a crucial role in generating realistically large cyclical fluctuations in unemployment. There is remarkably little evidence, however, on whether employers' hiring wages really are invariant to business cycle conditions. We review the small empirical literature and show that the methods used thus far are poorly suited for identifying employers' wage practices. We propose a simpler and more relevant approach - use matched employer/employee longitudinal data to identify entry jobs and then directly track the cyclical variation in the real wages paid to workers newly hired into those jobs. We illustrate the methodology by applying it to data from an annual census of employers in Portugal over the period 1982-2007. We find that real entry wages in Portugal over this period tend to be about 1.8 percent higher when the unemployment rate is one percentage point lower. Like most recent evidence on other aspects of wage cyclicality, our results suggest that the cyclical elasticity of wages is similar to that of employment.

This study uses an extraordinary Swedish data set to explore the sources of the intergenerational transmission of socioeconomic status. Merging data from administrative sources and censuses, we investigate the association between sons' and daughters' socioeconomic outcomes and those of their biological and rearing parents. Our analysis focuses on children raised in six different family circumstances: raised by both biological parents, raised by the biological mother without a stepfather, raised by the biological mother with a stepfather, raised by the biological father without a stepmother, raised by the biological father with a stepmother, and raised by two adoptive parents. Relative to the existing literature, the most remarkable feature of our data set is that it contains information on the biological parents even when they are not the rearing parents. We specify a simple additive model of pre-birth (including genetic) and post-birth influences and examine the model's ability to provide a unified account of the intergenerational associations in all six family types. Our results suggest substantial roles for both pre-birth and post-birth factors.

Les auteurs de plusieurs etudes recentes ont constate que l'inegalite des revenus s'etait considerablement accrue au Canada depuis la fin des annees 1970. En utilisant une base de donnees exceptionnelle constituee a partir des dossiers fiscaux longitudinaux, nous avons decompose la croissance de l'inegalite en composantes permanente et transitoire. Nous avons conclu que la croissance de l'inegalite des revenus temoigne d'un accroissement de l'inegalite a long terme et de l'instabilite des revenus. Grace a la grande taille de l'echantillon, nous avons pu estimer et tester des modeles plus riches que ceux permis par les enquetes par panel de relativement petite envergure utilises dans la plupart des etudes anterieures sur la dynamique des revenus. Par exemple, nous avons ete en mesure d'integrer la croissance heterogene des revenus et une marche aleatoire dans le meme modele, et nous croyons qu'ils sont tous deux empiriquement significatifs.