2020 (17), №1

The Main Factors and Conditions of Cyclical Wage Fluctuations Formation: the Conceptual Bases Summary

For citation: 

Perekarenkova, Yu. A. (2020). The Main Factors and Conditions of Cyclical Wage Fluctuations Formation: the Conceptual Bases Summary. Zhurnal Economicheskoj Teorii [Russian Journal of Economic Theory], 17 (1), 245-250


The main purpose of the article is to review the main directions and results of research in the wage dynamics field with respect to macrocyclic fluctuations of the economic situation, presented in the domestic and foreign economic literature. Achievement of the set goal assumed the solution of the following main tasks: firstly, to study the existing basic conceptual provisions in the field of changes in wages in the current theory of economic cycles, secondly, identify a number of factors underlying the formation of cyclical wage fluctuations, thirdly, consider the main wages trends in the formation and manifestation of cyclical fluctuations, taking into account the characteristics of economic development (economic and historical conditions) particular period. The application of this approach in the study allowed us to consider the main trends in wages relative to the economic cycle main phases on the example of the Russian economy. The main methods used in the study: theoretical analysis and generalization of the main conceptual provisions in the field of cyclic fluctuations, statistical analysis of the main trends in the dynamics of the average level of wages relative to cyclic fluctuations in the Russian economy in the period 1990–2018s.

PDF full
Downloaded: 32

Yulia Aleksandrovna Perekarenkova — Research Associate, Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences (Novosibirsk, Russian Federation; e-mail: perekarenkova@mail.ru).

erekarenkova, Y. A., & Krishka, V. I. (2019). Minimal’naya zarabotnaya plata i prozhitochnyy minimum v rossiyskoy ekonomike: teoreticheskiy i empiricheskiy analiz osnovnykh tendentsiy [Minimum wage and the subsistence level in the Russian economy: theoretical and empirical analysis of the main trends]. Ekonomicheskie i sotsial’nye peremeny: fakty, tendentsii, prognoz [Economic and Social Changes: Facts, Trends, Forecast], 12(2), 210–224. DOI: 10.15838/esc.2019.2.62.13. (In Russ.)

Gimpel’son, V., Kapelyushnikov, R. & Rosenau, S. (Eds.) (2017). Rossiyskiy rynok truda: tendentsii, instituty, strukturnye izmeneniya [Russian labour market: trends, institutions, structural changes]. Moscow, Russia, 148. (In Russ.)

Timacheva, E.V. (2015). Rossiyskiy rynok truda: tendentsii i perspektivy [Russian labour market: trends and pros- pects]. Trud i sotsial’nye otnosheniya [Labour and social relations], 3, 68–81. (In Russ.)

Basu, S. (1995). Procyclical Productivity: Increasing Returns of Cyclical Utilization? National Bureau of Economic Research, Working Paper, 5336, 44.

Bils, M. J. (1985). The real wages over the business cycle: evidence from panel data. Journal of Political Economy, 93(4),


Burnside, C., Eichenbaum, M., & Rebelo, S. (1995). Sectoral Solow Residuals. National Bureau of Economic Research, Working Paper, 5286, 13.

Burnside, C., Eichenbaum, M., & Rebelo, S. (1993). Labor Hoarding and the Business Cycle. Journal of Political Economy, 101(2), 245–273.

Chirinko, R. S. (1980). The real wage rate over the business cycle. The Review of Economics and Statistics, 62(3), 459–461.

Christiano, L. J., & Eichenbaum M. (1992). Current Real-Business-Cycle Theories and Aggregate Labor-Market Fluctuations. The American Economic Review, 82(3), 430–450.

Dunlop, J. (1938). The movement of real and money wage rates. The Economic Journal, 48(191), 413–434.

Gamber, E. N. & Joutz, F. L. (1997). Real wages over the business cycle. Eastern Economic Journal, 23(3), 277–290.

Keane, M., Moffitt, R. & Runkle, D. (1989). Real wages over the business cycle: estimating the impact of heterogeneity with micro data. Journal of Political Economy, 96(6), 1232–1266.

Kuh, E. (1966). Unemployment, production functions, and effective demand. Journal of Political Economy, 74(3), 238–249.

Kydland, F. & Prescott, E. (1982). Time to built and aggregate fluctuations. Econometrica, 50(6), 1345–1370.

Mankiw, G. N. (1989). Real business cycles: a new Keynesian perspective. Journal of Economic Perspectives, 3, 79–90.

Messina, J., Strozzi, Ch. & Turunen, J. (2009). Real wages over the business cycle OECD: evidence from the time and frequency domains. European Central Bank. Working Paper series, 1003, 47.

Mocan, H., & Baytas, A. (1991). Demand shocks, supply shocks and the cyclicality of real wage. Applied Economics, 23, 213–1220.

Neftci, S.N. (1978). A time-series analysis of the real wages-employment relationship. Journal of Political Economy, 86(2), 281–291.

Otani, I. (1978). Real wages and business cycles revisited. The Review of Economics and Statistics, 60(2), 301–304.

Otroc, Ch., & Pourpourides, P. (2008). On the cyclicality of real wages and wage differebtials. Working Papers of Cardiff Business School, E2008/19, 18.

Sargent, T. J. (1978). Estimation of dynamic labor demand schedules under rational expectations. Journal of Political Economy, 86(6), 1009–1044.

Scare, M., & Stjepanovic, S. (2016). Measuring Business Cycles: A Review. Contemporary Economics, 10(1), 83–94. DOI: 10.5709/ce.1897–9254.200.

Tarshis, L. (1939). Changes in real and money wages. The Economic Journal, 193, 150–154.