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The Role of Real Wage Rigidity and Labor Market Frictions for Unemployment and Inflation Dynamics
Christoffel, Kai; Linzert, Tobias - Institute for the Study of Labor (IZA) - 2005
employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …
Persistent link: https://www.econbiz.de/10005703779
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Nominal Wage Rigidities in a New Keynesian Model with Frictional Unemployment
Bodart, Vincent; Walque, Gregory De; Pierrard, Olivier; … - Institute for the Study of Labor (IZA) - 2006
In this paper, we propose a search and matching model with nominal stickiness à la Calvo in the wage bargaining. We analyze the properties of the model, first, in the context of a typical real business cycle model driven by stochastic productivity shocks and second, in a fully specified...
Persistent link: https://www.econbiz.de/10005703177
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Sequential Bargaining in a New-Keynesian Model with Frictional Unemployment and Staggered Wage Negotiation
De Walque, Gregory; Pierrard, Olivier; Sneessens, Henri; … - Institute for the Study of Labor (IZA) - 2009
period. The workers' bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence … cost determination. This set-up produces realistic labor market statistics together with inflation persistence …
Persistent link: https://www.econbiz.de/10005703208
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Price Dynamics and Production Lags
Lindbeck, Assar; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 1999
This paper provides a new explanation of why inflation is sluggish in response to aggregate demand shocks and why … rationale for a prolonged inverse relation between inflation and unemployment. The paper suggests that the interaction of … inflation persistence and unemployment persistence may offer a possible explanation of high and prolonged European unemployment. …
Persistent link: https://www.econbiz.de/10005702997
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More on Unemployment and Vacancy Fluctuations
Mortensen, Dale T.; Nagypál, Éva - Institute for the Study of Labor (IZA) - 2005
Shimer (2005a) argues that the Mortensen-Pissarides equilibrium search model of unemployment explains only about 10% of the response in the job-finding rate to an aggregate productivity shock. Some of the recent papers inspired by his critique are reviewed and commented on here. Specifically, we...
Persistent link: https://www.econbiz.de/10005703663
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What Do Participation Fluctuations Tell Us About Labor Supply Elasticities?
Haefke, Christian; Reiter, Michael - Institute for the Study of Labor (IZA) - 2011
In this paper we use information on the cyclical variation of labor market participation to learn about the aggregate labor supply elasticity. For this purpose, we extend the standard labor market matching model to allow for endogenous participation. A model that is calibrated to replicate the...
Persistent link: https://www.econbiz.de/10009353615
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Endogenous Labor Market Participation and the Business Cycle
Haefke, Christian; Reiter, Michael - Institute for the Study of Labor (IZA) - 2006
Existing models of equilibrium unemployment with endogenous labor market participation are complex, generate procyclical unemployment rates and cannot match unemployment variability relative to GDP. We embed endogenous participation in a simple, tractable job market matching model, show...
Persistent link: https://www.econbiz.de/10005703253
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Labor Search and Matching in Macroeconomics
Yashiv, Eran - Institute for the Study of Labor (IZA) - 2007
The labor search and matching model plays a growing role in macroeconomic analysis. This paper provides a critical, selective survey of the literature. Four fundamental questions are explored: how are unemployment, job vacancies, and employment determined as equilibrium phenomena? What...
Persistent link: https://www.econbiz.de/10005822179
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Amerisclerosis? The Puzzle of Rising U.S. Unemployment Persistence
Coibion, Olivier; Gorodnichenko, Yuriy; Koustas, Dmitri - Institute for the Study of Labor (IZA) - 2013
The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future U.S. recessions might look more like the Eurosclerosis experience of the 1980s than traditional V-shaped recoveries of the past. In this paper, we revisit possible explanations...
Persistent link: https://www.econbiz.de/10010709718
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A Search Model of Unemployment and Inflation
Lehmann, Etienne - Institute for the Study of Labor (IZA) - 2006
money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal …
Persistent link: https://www.econbiz.de/10005822838