The paper discusses the influence of the global economic crisis on the Latvian economy. Using the system dynamics approach and models produced beforehand, various development scenarios of tax policy, householder crediting, and the job market are analyzed. Produced models allow to obtain...

We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous labor markets. Facing search frictions within markets and reallocation frictions between markets, workers endogenously separate from employment and endogenously reallocate between...

This paper investigates the cyclical behaviour of real wages in urban China using the China Health and Nutrition Survey (CHNS) 1989-2006. Using changes in the unemployment rate as the cyclical measure, we find pro-cyclicality in the public sector and small/medium firms, but not in big firms. We...

This paper analyses wage flexibility in Chinese labor market using the China Health and Nutrition Survey (CHNS) for the period 1989-2009. China has highly coordinated wage-setting institutions which might contribute to higher wage sensitivity of the coordinated workers, but lower sensitivity in...

This paper analyses the behaviour of Australian labour market transition rates. Since the early 1980s the job finding rate has been significantly more volatile and pro-cyclical than the job loss rate and is strongly pro-cyclical. The economic downturns in the early 1980s and early 1990s were...

Recently, Pissarides (2008) has argued that the standard search model with sunk fixed matching costs increases unemployment volatility without introducing an unrealistic wage response in new matches. We revise the role of matching costs and show that when these costs are not sunk and, therefore,...

Relying on the non-negligible role played by the underground economy in the labour market fluctuations, this paper extends the standard matching model à la Mortensen-Pissarides by introducing an underground sector along with an endogenous sector choice for both entrepreneurs and workers. These...

Australia has experienced a varied track record on unemployment. For the third quarter of the 20th century unemployment averaged 2.0 per cent. This is bracketed by average unemployment rates of 8.6 and 7.4 per cent in the second and fourth quarter centuries. Explanations of this phenomenon vary....

Recently, Pissarides (2008) has argued that the standard search model with sunk fixed matching costs increases unemployment volatility without introducing an unrealistic wage response in new matches. We revise the role of matching costs and show that when these costs are not sunk and, therefore,...

This paper examines the prospects for Australia meeting the Governments target to bring unemployment down to 5 per cent by the year 2000. Particular attention is paid to the effect of the business cycle on unemployment.