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The paper develops a simple three-sector model of a developing country with nominal wage rigidity, in which one sector is thought of as the primary sector and the other two are sectors in which the country can diversify. The paper then analyzes the relationship between the market structure of...
Persistent link: https://www.econbiz.de/10005825986
-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 when we get two wages, and which wages are actually posted. For an example with K … combination of posted reservation wages, depending on parameters. We also show how wages, profits, and unemployment depend on …
Persistent link: https://www.econbiz.de/10005263884
Work absence is an important part of the individual decision on actual working hours. This paper focuses on sickness absence in Europe and develops a stylized model where absence is part of the labor-leisure decision made by workers and the production decision made by profit-maximizing firms,...
Persistent link: https://www.econbiz.de/10005826222
importance of incomplete markets when risk-averse agents are subject to idiosyncratic employment shocks. A version of the model … calibrated to the U.S. shows that market incompleteness affects individual behavior and aggregate conditions: it reduces wages …
Persistent link: https://www.econbiz.de/10008528693
Over the past decade, productivity-adjusted wages have grown at a slower pace in Japan than in other rich countries … felt in all advanced economies. Reforms aimed at increasing productivity in services and reducing gaps in employment … protection and benefits between regular and nonregular workers could help put Japan's wages on an upward trajectory in the medium …
Persistent link: https://www.econbiz.de/10004999951
In flow models of the labor market, wages are determined by negotiations between workers and employers on the surplus …
Persistent link: https://www.econbiz.de/10005604781
Using a search and matching labor market equilibrium model, this paper quantifies lost labor productivity and consumption per worker that emerges from the restrictions on dismissals. Dismissal restrictions hamper the efficient reallocation of workers, with workers remaining longer in jobs. But...
Persistent link: https://www.econbiz.de/10005604782
institutional changes introduced by the 1988 Constitution lowered the sensitivity of real wages to changes in labor market slack and …
Persistent link: https://www.econbiz.de/10011242295
The aim of this paper is to evaluate the welfare gains from financial integration for developing and emerging market economies. To do so, we build a stochastic endogenous growth model for a small open economy that can (i) borrow from the rest of the world, (ii) invest in foreign assets, and...
Persistent link: https://www.econbiz.de/10005248157
We study the performance of the four Western Hemisphere trading blocs during the period 1978-2001. For the North American Free Trade Agreement (NAFTA), trade integration outweighed trade diversion; for MERCOSUR, increased integration and trade diversion went hand in hand; for the Central American...
Persistent link: https://www.econbiz.de/10005263690