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We analyze the joint impact of employment protection and informality on macroeconomic volatility and the propagation of shocks in emerging economies. For this, we propose a small open economy business cycle model with frictional labor markets, labor regulation, and an informal sector, modeled as...
Persistent link: https://www.econbiz.de/10012165940
Can the standard search-and-matching labor market model replicate the business cycle fluctuations of the job finding rate and the unemployment rate? In the odel, these fluctuations are driven by movements in productivity. This paper inestigates the sources of productivity fluctuations that are...
Persistent link: https://www.econbiz.de/10011756844
This paper discusses various concepts of unemployment rate benchmarks that are frequently used by policymakers for assessing the current state of the economy as it relates to the pursuit of both price stability and maximum employment. In particular, we propose two broad categories of...
Persistent link: https://www.econbiz.de/10012389411
Rising wage inequality in the U.S. and Britain (especially in the 1980s) and rising continental European unemployment … (with rather stable wage inequality) have led to a popular view in the economics profession that these two phenomena are …
Persistent link: https://www.econbiz.de/10010297281
Rising wage inequality in the U.S. and Britain (especially in the 1980s) and rising continental European unemployment … (with rather stable wage inequality) have led to a popular view in the economics profession that these two phenomena are …
Persistent link: https://www.econbiz.de/10010262722
Motivated by migration phenomena and wage-inflation spillovers, we investigate the relationship between the two and the … dynamic model to identify the pass-through. Our empirical approach focuses on the wage Phillips Curve, price setting under … inflation and tight labor market conditions increase wage-inflation sensitivity. A continuous decline of population by 1% leads …
Persistent link: https://www.econbiz.de/10014577279
This paper presents empirical evidence that the neoclassical explanation of real wage has a high explanatory power at … macro level. The factor endowments explanation of wage is surprisingly rare in the literature, at least at empirical level … and labor stocks) have a significant explanatory power on the determination of real wage. Based on our results, we …
Persistent link: https://www.econbiz.de/10011807220
wage growth. This paper analyzes the sources of the changing shape of the lower-tail of the U.S. wage and employment …
Persistent link: https://www.econbiz.de/10003884083
This paper studies the relationship between employment and wage structures in West Germany based on the IAB employment … as important dimensions of heterogeneity. After having identified cohort effects in skill wage premia and in the … simulate the magnitude of wage changes within the respective skill groups that would have been necessary to halve skill …
Persistent link: https://www.econbiz.de/10003395526
This paper studies a model of the distribution of income under bounded needs. Utility derived from any given good reaches a bliss point at a finite consumption level of that good. On the other hand, introducing new varieties always increases utility. It is assumed that each variety is owned by a...
Persistent link: https://www.econbiz.de/10011398011