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We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this is sufficient to increase both, output and inflation persistence
Persistent link: https://www.econbiz.de/10005700592
Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional … answer in the theoretical literature is that insider power has no influence on employment, provided that the newly hired … firing in recessions, while leaving hiring in booms unchanged. Thereby insider power reduces average employment. …
Persistent link: https://www.econbiz.de/10010983128
full Danish flexicurity set of policies (low employment protection, high unemployment benefits and workfare). Our results …
Persistent link: https://www.econbiz.de/10005079106
This paper provides a theoretical and quantitative analysis of various types of wellknown employment subsidies. Two … important questions are addressed: (i) How should employment subsidies be targeted? (ii) How large should the subsidies be? We …) improve employment and welfare, (b) do not raise earnings inequality and (c) are self-financing. This criterion enables us to …
Persistent link: https://www.econbiz.de/10005755178
This paper examines the interactions between employment and training policies. Their effectiveness in stimulating … income and employment may be interdependent for various important reasons. For example, the more employment policies … stimulate the employment rate, the greater the length of time over which workers use the human capital generated by training …
Persistent link: https://www.econbiz.de/10005755249
This paper uses the job creation and destruction model of the search and matching type proposed by García-Pérez and Osuna (2014) to study the effectiveness of subsidizing permanent job creation as a strategy to reduce labour market segmentation between permanent and temporary contracts. The...
Persistent link: https://www.econbiz.de/10011262996
contributes to creating competitive economic structures, employment and growth or whether it just fosters an exaggerated capital …
Persistent link: https://www.econbiz.de/10005755271
This paper analyzes the optimal adjustment strategy of an inventory-holding firm facing price- and quantity-adjustment costs in an inflationary environment. The model nests both the original menu-cost model that allows production to be costlessly adjusted, and the later model that includes...
Persistent link: https://www.econbiz.de/10005700577
This paper argues that the production constraints in the basic NAIRU model should be distinguished by type: capital constraints and labour constraints. It notes the failure to incorporate this phenomenon in standard macro models. Using panel data for UK manufacturing over eighty quarters it is...
Persistent link: https://www.econbiz.de/10005083405
incentives for retaining employment, incentives for creating employment, incentives for seeking and keeping a job, incentives for …
Persistent link: https://www.econbiz.de/10010887030