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A number of authors have recently emphasized that the conventional model of unemployment dynamics due to Mortensen and Pissarides has difficulty accounting for the relatively volatile behavior of labor market activity over the business cycle. We address this issue by modifying the MP framework...
Persistent link: https://www.econbiz.de/10012466167
, the employment-weighted mean volatility of firm growth rates has declined by more than 40% since 1982. This result stands … volatility among privately held firms. This pattern holds in every major industry group. Employment shifts toward older …, we exploit the recently developed Longitudinal Business Database (LBD), which contains annual observations on employment …
Persistent link: https://www.econbiz.de/10012466311
This paper sets out the political economy behind Asian governments' participation in a revived Bretton Woods System. The overriding problem for these governments is to rapidly integrate a large pool of underemployed labor into the industrial sector. The principal constraints are inefficient...
Persistent link: https://www.econbiz.de/10012468066
There is a broad consensus among US opinion leaders that our economic problem is largely one of failures of international competition -- that trade deficits have eroded our manufacturing base, that inability to sell on world markets has been a major drag on economic growth, and that imports from...
Persistent link: https://www.econbiz.de/10012474468
Labor supply is unresponsive to permanent changes in wage rates. Thus, income and substitution effects cancel, but are they both close to zero or both large? This paper develops a theory of labor supply where income and substitution effects cancel, taking into account optimization over time,...
Persistent link: https://www.econbiz.de/10012464439
The Great Depression of the 1930s led contemporaries to worry that people hit by hard times would turn to crime in their efforts to survive. Franklin Roosevelt argued that the unprecedented and massive expansion in relief efforts "struck at the roots of crime" by providing subsistence income to...
Persistent link: https://www.econbiz.de/10012465832
We use a forty-two country model of production and trade to assess the implications of eliminating current account imbalances for relative wages, relative GDP's, real wages, and real absorption. How much relative GDP's need to change depends on flexibility of two forms: factor mobility and the...
Persistent link: https://www.econbiz.de/10012464800
The econometric consensus on the effects of social spending confirms a puzzle we confront in the raw data: There is no clear net GDP cost of high tax-based social spending on GDP, despite a tradition of assuming that such costs are large. The paper offers five keys to this free lunch puzzle....
Persistent link: https://www.econbiz.de/10012468828
Homelessness is arguably the most extreme hardship associated with poverty in the United States, yet people … experiencing homelessness are excluded from official poverty statistics and much of the extreme poverty literature. This paper … population, including the first national estimates of income, employment, and safety net participation based on administrative …
Persistent link: https://www.econbiz.de/10014528363
A new wave of social service programs aims to build a pathway out of poverty by helping clients define their own goals … percentage points higher employment rates after one year compared with a control group offered only help with an immediate need … services affect areas beyond employment, even when other areas of life are participants' primary goals. We find some evidence …
Persistent link: https://www.econbiz.de/10015072853