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Kohlbrecher, Britta; Merkl, Christian; Nordmeier, Daniela - Institut für Weltwirtschaft (IfW) - 2014

Many labor market models use both idiosyncratic productivity and a vacancy free entry condition. This paper shows that these two features combined generate an equilibrium comovement between matches on the one hand and unemployment and vacancies on the other hand, which is observationally...

Persistent link: https://www.econbiz.de/10010886896

Does Short-Time Work Save Jobs? A Business Cycle Analysis

Balleer, Almut; Gehrke, Britta; Lechthaler, Wolfgang; … - Institut für Weltwirtschaft (IfW) - 2013

This paper analyzes the effects of short-time work (i.e., government subsidized working time reductions) on unemployment and output fluctuations. The central question is whether the rule based component (i.e., the existence of the institution short-time work) and the discretionary component...

Persistent link: https://www.econbiz.de/10010886965

An Incentive Theory of Matching

Brown, Alessio J. G.; Merkl, Christian; Snower, Dennis J. - Institut für Weltwirtschaft (IfW) - 2010

This paper examines the labour market matching process by distinguishing its two component stages: the contact stage, in which job searchers make contact with employers and the selection stage, in which they decide whether to match. We construct a theoretical model explaining two-sided selection...

Persistent link: https://www.econbiz.de/10010955922

Macroeconomic Volatilities and the Labor Market: First Results from the Euro Experiment

Merkl, Christian; Schmitz, Tom - Institut für Weltwirtschaft (IfW) - 2009

This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone … could account for volatility differences across member states, but labor market characteristics have remained very diverse … significant negative effect on output volatility, while replacement rates have a positive effect, both of which are in line with …

Persistent link: https://www.econbiz.de/10004992844

An Incentive Theory of Matching

Brown, Alessio J. G.; Merkl, Christian; Snower, Dennis - Institut für Weltwirtschaft (IfW) - 2009

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are heterogeneous variations in the characteristics of workers and jobs, and firms face adjustment costs in responding to these variations. Matches and separations are described...

Persistent link: https://www.econbiz.de/10004992848

Monetary Persistence and the Labor Market: A New Perspective

Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis - Institut für Weltwirtschaft (IfW) - 2008

It is common knowledge that the standard New Keynesian model is not able to generate a persistent response in output to temporary monetary shocks. We show that this shortcoming can be remedied in a simple and intuitively appealing way through the introduction of labor turnover costs (such as...

Persistent link: https://www.econbiz.de/10005818879

Extensive vs. Intensive Margin in Germany and the United States: Any Differences?

Merkl, Christian; Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2009

This papers analyzes the role of the extensive vis-à-vis the intensive margin of labor adjustment in Germany and the United States. The contribution is twofold. First, we provide an update of older U.S. studies and confirm the view that the extensive margin (i.e., the adjustment in the number...

Persistent link: https://www.econbiz.de/10008531660

They Are Even Larger! More (on) Puzzling Labor Market Volatilities

Gartner, Hermann; Merkl, Christian; Rothe, Thomas - Institut für Weltwirtschaft (IfW) - 2009

This paper shows that the German labor market is more volatile than the US labor market. Specifically, the volatility … vacancies) divided by the volatility of labor productivity is roughly twice as large as in the United States. We derive and …

Persistent link: https://www.econbiz.de/10004987458

The Inflation-Output Tradeoff: Which Type of Labor Market Rigidity Is to Be Blamed?

Merkl, Christian - Institut für Weltwirtschaft (IfW) - 2009

In the standard New Keynesian sticky price model the central bank faces no contradiction between the stabilization of inflation and the stabilization of the welfare relevant output gap after a productivity shock hits the economy. When the standard model is enhanced by real wage rigidities or...

Persistent link: https://www.econbiz.de/10005566197

Efficiency in a Model of Labor Selection

Chugh, Sanjay; Merkl, Christian - Institut für Weltwirtschaft (IfW) - 2011

-finding rates, in line with empirical evidence. We show analytically in a simplified version of the model that volatility arises …

Persistent link: https://www.econbiz.de/10008855330