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how this framework can generate changes in unemployment and labor participation that match those uncovered by the … empirical literature studying the "China shock." We find that the China shock leads to average welfare increases in most U ….S. states, including many that experience unemployment during the transition. However, nominal rigidities reduce the overall U …
Persistent link: https://www.econbiz.de/10013384886
We study the impact of graduating in a recession in Flanders (Belgium), i.e. in a rigid labor market. In the presence of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working time and earnings by about 4.5% up to twelve years after...
Persistent link: https://www.econbiz.de/10010491732
We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms …-over effects of labor market institutions ; unemployment ; international trade ; search frictions ; heterogeneous firms …
Persistent link: https://www.econbiz.de/10003887183
I construct and analyze a growth model in which technical change can increase unemployment. I first analyze the forces … that deliver a constant steady state unemployment rate in this setting. Labor-saving technical change increases … unemployment, which lowers wages and creates incentives for future investment in labor-using technologies. In the long run, this …
Persistent link: https://www.econbiz.de/10014583789
A perceived need to increase nominal wage flexibility as a substitute for domestic monetary policy and a tendency to less wage moderation are likely to promote bargaining co-ordination and social pacts in the EMU. But such co-ordination is not likely to be sustainable in the long run, as it...
Persistent link: https://www.econbiz.de/10011399330
performance indicators (unemployment, long-term unemployment, employment, activity rate). Our results confirm that high taxes … increase unemployment, while active labour market policies tend to reduce it. We also show that stricter employment protection … market ; unemployment ; European Union ; labour market institutions …
Persistent link: https://www.econbiz.de/10003763951
the wages for skilled and unskilled workers, leading to involuntary unemployment of unskilled workers in equilibrium … by lower wage differentials as well as higher unemployment. Allowing for endogenous skill formation in both countries …, the effects of a globalization shock modelled as the entry of newly industrializing countries into the trading world on …
Persistent link: https://www.econbiz.de/10011402411
We study the effect of a declining labor force on the incentives to engage in labor-saving technical change and ask how this effect is influenced by institutional characteristics of the pension scheme. When labor is scarcer it becomes more expensive and innovation investments that increase labor...
Persistent link: https://www.econbiz.de/10003791799
in their unemployment rate and not a decline in labour force participation rate. Policymakers should take account of …
Persistent link: https://www.econbiz.de/10012157899
We develop a network trade model with country-sector level input-output linkages. It includes (1) domestic and global value chain linkages between all country-sectors, (2) direct as well as indirect shipments (via other sectors and countries) to a final destination, (3) value added rather than...
Persistent link: https://www.econbiz.de/10011962330