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employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of …). Accordingly, the efficient unemployment rate is the geometric average of the unemployment and vacancy rates: u* = √uv. We compute …
Persistent link: https://www.econbiz.de/10013334429
This study documents how job seekers update perceived job-finding prospects by unemployment duration and by learning … about aggregate unemployment. We find that job seekers perceive an 18% decline in their job-finding probability for each … additional month of unemployment, but perceive a higher job-finding probability when the aggregate unemployment rate is …
Persistent link: https://www.econbiz.de/10014447261
, that frictions (sand-in-the-wheels) may decrease unemployment and that the equilibrium is determined by two simple …
Persistent link: https://www.econbiz.de/10014635663
A recent econometric literature shows two distinct paths for identification with shift-share instruments, leveraging either many exogenous shifts or exogenous shares. We present the core logic of both paths and practical takeaways via simple checklists. A variety of empirical settings illustrate...
Persistent link: https://www.econbiz.de/10015171639
We present a model in which efficient long-term employment relationships are sustained by wage adjustments prompted by productivity shocks and outside job offers. These wage adjustments occur only sporadically, due to the presence of renegotiation costs. The model is amenable to analytical...
Persistent link: https://www.econbiz.de/10015145100
This paper studies how gradualism affects the welfare gains from trade, technology, and reforms. When people face adjustment frictions, gradual shocks create less adverse distributional effects in the short run. We show that there are welfare gains from inducing a more gradual transition via...
Persistent link: https://www.econbiz.de/10013477247
Recent empirical studies document that the distribution of earnings changes displays substantial deviations from lognormality: in particular, earnings changes are negatively skewed with extremely high kurtosis (long and thick tails), and these non-Gaussian features vary substantially both over...
Persistent link: https://www.econbiz.de/10014528338
How costly is inflation to workers? Answers to this question have focused on the path of real wages during inflationary periods. We argue that workers must take costly actions ("conflict") to have nominal wages catch up with inflation, meaning there are welfare costs even if real wages do not...
Persistent link: https://www.econbiz.de/10015072897
pay and the local unemployment rate -- in modern U.S. data. Consistent with recent evidence from more than 40 other …'s theoretical framework: (i) wages are higher in states with more generous unemployment benefits, (ii) the perceived probability of … job-finding is lower in states with higher unemployment, and (iii) employees are less happy in states that have higher …
Persistent link: https://www.econbiz.de/10012467345
is imputed using existing labor supply elasticities, and variations in unemployment insurance laws are used to estimate …
Persistent link: https://www.econbiz.de/10012468483