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Wage Rigidity and Job Creation
Haefke, Christian; Sonntag, Marcus; Rens, Thijs van - Institut für Weltwirtschaft (IfW) - 2009
Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume wages are rigid. We explore whether this explanation is consistent with the data. We show that the wage of newly hired workers, unlike the aggregate wage, is volatile and...
Persistent link: https://www.econbiz.de/10005700599
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What Can a New Keynesian Labor Matching Model Match?
Reicher, Christopher - Institut für Weltwirtschaft (IfW) - 2009
1980s. Based on the timing of observed fluctuations in interest rates, inflation, and productivity, it appears that the …
Persistent link: https://www.econbiz.de/10005700617
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Revisiting the Matching Function
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
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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
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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 … theory. Real wage rigidities do not seem to play much of a role. This result is in line with our employed labor market model … output volatility, they do not seem to have much of an effect on inflation volatility. Our estimations indicate that the …
Persistent link: https://www.econbiz.de/10004992844
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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 …
Persistent link: https://www.econbiz.de/10004992848
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Staggered Wages, Sticky Prices, and Labor Market Dynamics in Matching Models
Neugebauer, Janett; Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2010
This paper investigates the role of staggered wages and sticky prices in explaining stylized labor market facts. We build on a partial equilibrium search and matching model and expand the model to a general equilibrium model with sticky prices and/or staggered wages. We show that the core model...
Persistent link: https://www.econbiz.de/10008541314
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On the Introduction of Firing Costs
Ahrens, Steffen; Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2009
This paper provides a survey of the recent literature about firing costs and discusses the transmission channels of firing costs in a partial equilibrium context. In addition, we expand our analysis two types of firing costs in a New Keynesian model with purely endogenous separations. We further...
Persistent link: https://www.econbiz.de/10008531659
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Fairness and the disinflation puzzle
Lunardelli, Andre - Institut für Weltwirtschaft (IfW) - 2014
to match past inflation. However, the present paper proposes a much larger effect by using the job finding rate as the …
Persistent link: https://www.econbiz.de/10010956041
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The Evolution of Inflation and Unemployment: Explaining the Roaring Nineties
Karanassou, Marika; Sala, Hector; Snower, Dennis J. - Institut für Weltwirtschaft (IfW) - 2007
This paper argues that there is a nonzero inflation-unemployment tradeoff in the long-run due to frictional growth, a …-run Phillips curve suggests the development of a holistic framework that can jointly explain the evolution of inflation and … equations. We then evaluate the inflation-unemployment tradeoff and assess the impact of productivity, money growth, budget …
Persistent link: https://www.econbiz.de/10005818817