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Haefke, Christian; Sonntag, Marcus; van Rens, Thijs - Institute for the Study of Labor (IZA) - 2008

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/10005233819

The Beveridge Curve

Yashiv, Eran - Institute for the Study of Labor (IZA) - 2006

underlying theory is the search and matching model, with workers and firms engaging in costly search leading to random matching …

Persistent link: https://www.econbiz.de/10005763504

Do Emotions Improve Labor Market Outcomes?

Goette, Lorenz; Huffman, David - Institute for the Study of Labor (IZA) - 2005

the inflation rate, but they very seldom cut nominal wages. This pattern suggests that workers exhibit a special … compare the inflation rate to the wage change before it becomes clear whether the change increases or decreases utility, thus … inflation rate. Although emotions may benefit individual workers, by strengthening their bargaining position and preventing wage …

Persistent link: https://www.econbiz.de/10005763663

The Unemployment Inflation Trade-Off in the Euro Area

Linzert, Tobias - Institute for the Study of Labor (IZA) - 2005

This paper analyzes the relationship between unemployment and wage inflation for 10 of the euro area countries. The … combination of low wage inflation and high unemployment in Europe is usually attributed to a rise in the natural rate of … unemployment that may account for a changing pattern in the unemployment inflation tradeoff. Moreover, it analyzes whether the …

Persistent link: https://www.econbiz.de/10005703542

Fairness Considerations in Labor Union Wage Setting: A Theoretical Analysis

Strifler, Matthias; Beissinger, Thomas - Institute for the Study of Labor (IZA) - 2012

We consider a theoretical model in which unions not only take the outside option into account, but also base their wage-setting decisions on an internal reference, called the fairness reference. Wage and employment outcomes and the shape of the aggregate wage-setting curve depend on the weight...

Persistent link: https://www.econbiz.de/10010570796

Employment Fluctuations with Downward Wage Rigidity: The Role of Moral Hazard

Costain, James; Jansen, Marcel - Institute for the Study of Labor (IZA) - 2009

This paper studies the cyclical dynamics of Mortensen and Pissarides' (1994) model of job creation and destruction when workers' effort is not perfectly observable, as in Shapiro and Stiglitz (1984). An occasionally-binding no-shirking constraint truncates the real wage distribution from below,...

Persistent link: https://www.econbiz.de/10004976883

Revisiting the Matching Function

Kohlbrecher, Britta; Merkl, Christian; Nordmeier, Daniela - Institute for the Study of Labor (IZA) - 2014

This paper shows analytically and numerically that there are two ways of generating an observationally equivalent comovement between matches, unemployment, and vacancies in dynamic labor market models: either by assuming a standard Cobb-Douglas contact function or by combining a degenerate...

Persistent link: https://www.econbiz.de/10011103268

Measuring Heterogeneity in Job Finding Rates Among the Nonemployed Using Labor Force Status Histories

Kudlyak, Marianna; Lange, Fabian - Institute for the Study of Labor (IZA) - 2014

We use a novel approach to studying the heterogeneity in the job finding rates of the nonemployed by classifying the nonemployed by labor force status (LFS) histories, instead of using only one-month LFS. Job finding rates differ substantially across LFS histories: they are 25-30% among those...

Persistent link: https://www.econbiz.de/10011094076

Labor Market Reforms and Current Account Imbalances: Beggar-Thy-Neighbor Policies in a Currency Union?

Baas, Timo; Belke, Ansgar - Institute for the Study of Labor (IZA) - 2014

Member countries of the European Monetary Union (EMU) initiated wide-ranging labor market reforms in the last decade. This process is ongoing as countries that are faced with serious labor market imbalances perceive reforms as the fastest way to restore competitiveness within a currency union....

Persistent link: https://www.econbiz.de/10010959728

An Incentive Theory of Matching

Brown, Alessio J. G.; Merkl, Christian; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 2009

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are …

Persistent link: https://www.econbiz.de/10004961441