Lorenz Goette

TL;DR: In this article, the International Wage Flexibility Project provides new microeconomic evidence on how wages change for continuing workers and finds evidence of both downward nominal and real wage rigidities across countries.

TL;DR: In this article, the authors argue that important labor market phenomena can be better understood if one takes the inherent incompleteness and relational nature of most employment contracts and the existence of reference-dependent fairness concerns among a substantial share of the population into account.

TL;DR: This paper found a large and statistically significant negative correlation between numerical ability and various measures of delinquency and default in the U.S. subprime mortgage market and found that those with the highest measured level of numerical ability had lower foreclosure starts compared with those with low numerical ability.

TL;DR: Empirical evidence is presented showing that the ability to perform basic mathematical calculations is negatively associated with the propensity to default on one’s mortgage, and that individuals with limited numerical ability default on their mortgage due to behavior unrelated to the initial choice of their mortgage.

TL;DR: In this paper, the authors show that nominal wage rigidity proves robust in a low inflation environment, constituting a considerable obstacle to real wage adjustments, and that real wages would indeed respond to unemployment without downward nominal rigidity.