Butter, Frank A.G. den; Jongen, Egbert L.W.; Kock, Udo - VU University Amsterdam, Faculty of Economics, Business … - 1999
This paper considers labour supply and demand shocks in a simple flow model of the labour market. We explicitly model the propagation of shocks and the adjustment mechanisms. By way of simulations we explore the extent of labour market hysteresis arising from negative duration dependence and the...