In a macro-modeling sense, Are wages sticky? It's complex. If firms care about their workers' Work-life balance, deeply, truly, The answer is actually `No'. In that case firms would choose hours As if wages were flexible--- And hours are what matter most For a business cycle theory: There is a shadow wage which is Both labor disutility And the marginal cost product. For wages to act like sticky, There has to be a bad conflict Between the firms and the workers, Reducing the size of the pie--- Or it could be stupidity Makes wages function like sticky. Worker-firm cooperation Makes wages function like flexible, Even if they look quite sticky: The shadow wage is flexible. The observed wage can be sticky Partly *because* it matters less For fluctuations in hours.