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We analyze labor market models where the law of one price does not hold-that is, models with equilibrium wage dispersion. We begin by assuming workers are ex ante heterogeneous, and highlight a flaw with this approach: if search is costly, the market shuts down. We then assume workers are...
Persistent link: https://www.econbiz.de/10014400958
Search models with posting and match-specific heterogeneity generate wage dispersion. Given K values for the match-specific variable, it is known that there are K reservation wages that could be posted, but generically never more than two actually are posted in equilibrium. What is unknown is...
Persistent link: https://www.econbiz.de/10014402407
Using Chilean data, we document that for resource-rich small open economies the effects of terms of trade shocks on the wage gap (between skilled and unskilled workers) depend on factor intensities in the non-tradable sector, following the model in Galiani, Heymann, and Magud (2010). For a...
Persistent link: https://www.econbiz.de/10014403224
This 2006 Article IV Consultation highlights that a broad-based economic upturn is under way in Sweden, spurred by …
Persistent link: https://www.econbiz.de/10014405925
In Sweden, the authorities have indicated that their medium-term fiscal strategy is based on restraining expenditures …
Persistent link: https://www.econbiz.de/10014410949
This Selected Issues paper on Sweden analyzes possible adjustments to the fiscal framework that the authorities may … wish to consider. The paper starts with a brief description of Sweden’s fiscal framework, followed by an assessment of the … framework’s strengths and weaknesses. The scope for stabilization policy in Sweden is analyzed. The paper describes the …
Persistent link: https://www.econbiz.de/10014406368
weakness led to slower growth of Sweden in 2001. Private consumption stagnated despite rising disposable income, owing to …
Persistent link: https://www.econbiz.de/10014406369
This Selected Issues paper on Sweden reviews economic developments in Sweden during 1994–98. In 1994, the general …
Persistent link: https://www.econbiz.de/10014397274
This paper discusses key findings of the Detailed Assessment of Observance of Standards and Codes in Sweden. The … assessment reveals that the laws and regulations on banking activities and their supervision are in place in Sweden. The …
Persistent link: https://www.econbiz.de/10014403445
This Selected Issues paper on Sweden examines developments in the government structural balance. The paper identifies …
Persistent link: https://www.econbiz.de/10014397306