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Central banks need to be concerned about wages since they are a major driver of inflation. Rising wages are needed to signal directions for market adjustments to ensure growth. Wage growth is driven by relative scarcity, labor productivity and expectations about inflation and future growth....
Persistent link: https://www.econbiz.de/10012131008
Previous research has found identity to be relevant for international migration, but has neglected internal mobility as … labor market outcomes of migrants in China, the country with the largest record of internal mobility. Using instrumental …
Persistent link: https://www.econbiz.de/10012316012
Previous research on internal mobility has neglected the role of local identity contrary to studies analyzing … mobility in the world, closes the gap. Instrumental variable estimation and careful robustness checks suggest that identifying …
Persistent link: https://www.econbiz.de/10014464452
The paper presents a stochastic insider-outsider model that accounts for the following stylized facts: (1) unemployment … rates display a high degree of serial correlation, or `persistence'; (2) the average rate of unemployment has been higher in … long-run unemployment rate is independent of the level of productivity and the magnitude of the labour force. The model …
Persistent link: https://www.econbiz.de/10005789127
This paper views movements in unemployment as the result of the interaction between: (a) lags in labour market … decisions; and (b) labour market shocks with temporary and permanent components. Two features of unemployment dynamics are … examined: (i) `unemployment persistence', arising when temporary shocks have persistent effects on unemployment; and (ii …
Persistent link: https://www.econbiz.de/10005791454
opportunity to use part of their unemployment benefits to provide employment vouchers to the firms that hire them. The vouchers … would depend positively on unemployment duration and training. The paper argues that this policy would give unemployed … failures generated and amplified by unemployment benefit systems. A simple theoretical model is presented, followed by …
Persistent link: https://www.econbiz.de/10005791635
labour market institutions (e.g. unemployment benefits, job security legislation and payroll taxes) have complementary … effects on unemployment; and thus (b) that policies aimed at reforming these institutions are also complementary. These policy …) is unlikely to achieve significant reductions in unemployment. Rather, labour market reform becomes particularly …
Persistent link: https://www.econbiz.de/10005791663
The paper examines the employment and unemployment implications of permitting unemployed people to use part of their … unemployment benefits to provide employment vouchers to the firms that hire them. This opportunity to transfer unemployment … benefits, `benefit transfers', would help replace the unemployment trap by providing an incentive to seek and provide jobs. The …
Persistent link: https://www.econbiz.de/10005067548
This paper evaluates two theories of unemployment: the natural rate theory (whereby unemployment is depicted as … fluctuating around a reasonably stable natural rate) and the chain reaction theory (which views movements in unemployment as the … unemployment not only in the short run, but in the long run as well. The reason is that, in the presence of growing exogenous …
Persistent link: https://www.econbiz.de/10005504680
This paper attempts to explain disparities among the unemployment experiences of different OECD countries in terms of … the `fragility' of the short-run unemployment equilibrium (the impact of labour market shocks on the short …-run unemployment rate) and the lag structure of the employment determination, wage setting, and labour force participation decisions …
Persistent link: https://www.econbiz.de/10005114179