Resumen de The heterogenous cyclicality of real wages. Evidence from wage groups in economic expansions and recessions

María Cervini Plá, Antonia Lopez Villavicencio, José Ignacio Silva Becerra

• We investigate the cyclicality of real wages using individual data for the years 1991-2008 in the UK, . We pay special attention to heterogeneity among di erent wage groups during positive and negative shocks to the unemployment rate. We document that top wages are more cyclical than lower ones. More- over, the estimated cyclicality is as high as 3% in recessions for top earners. We also show that real earnings are acyclical for low wage workers. Instead, their adjustment to the cycle take place through hours worked {in case of booms{ or unemployment {in recessions{.