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Several authors have proposed staggered wage bargaining as a way to introduce sticky wages into search and matching … a series of estimated shocks from US data into a search and matching model with sticky prices and wages. I compare the … implications of how the sticky wages enter into the hiring decision, and there seems to be a tradeoff between generating business …
Persistent link: https://www.econbiz.de/10009021626
The secular shift in labor demand from unskilled to skilled labor is explained within a model that is solved numerically. There are three branches producing a basic good, a differentiated luxury good, and an intermediate service. Production is more skill-intensive in the luxury good and the...
Persistent link: https://www.econbiz.de/10005755135
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
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
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
The expansion of higher education in theWestern countries has been accompanied by a marked widening of wage differentials and increasing overqualification. While the increase in wage differentials has been attributed to skill-biased technological change that made advanced skills scarce, this...
Persistent link: https://www.econbiz.de/10005083381
Over the past two decades, technological progress in the United States has been biased towards skilled labor. What does this imply for business cycles? We construct a quarterly skill premium from the CPS and use it to identify skill-biased technology shocks in a VAR with long-run restrictions....
Persistent link: https://www.econbiz.de/10010886889
wages and the local unemployment rate - within a number of occupations. It exploits the Bank of Italy's Household Survey and …
Persistent link: https://www.econbiz.de/10010961610
proximate causes have been reversed (e.g., after wages in the high-unemployment regions have fallen relative to those in the low … negotiations due to a drop in the replacement rate or firing costs, leading to a fall in wages, (ii) hiring subsidies, and (iii …
Persistent link: https://www.econbiz.de/10005755196
replicate these findings in a search model, it must be that wages are rigid in ongoing jobs but flexible at the start of new … wages are rigid. We explore whether this explanation is consistent with the data. We show that the wage of newly hired …
Persistent link: https://www.econbiz.de/10005700599