introduction of labor turnover costs (such as hiring and firing costs). Assuming that it is costly to hire and fire workers implies … continue to exert an effect on the labor market even long after the shock is over. The sluggishness of the labor market … relationship and a negative correlation between job creation and job destruction. -- Monetary persistence ; labor market ; hiring …

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are …

We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are … model captures well the salient features of European labor market, as it leads to sclerotic dynamics of worker flows. The … coexistence of those types of labor market frictions alongside with sticky prices gives rise to a non-trivial trade-off for the …

This paper shows that the German labor market is more volatile than the US labor market. Specifically, the volatility … of the cyclical component of several labor market variables (e.g., the job-finding rate, labor market tightness, and job … vacancies) divided by the volatility of labor productivity is roughly twice as large as in the United States. We derive and …

persistence generated by wage vis-à-vis price staggering depends on the relative competitiveness of the labor and product markets … homogenous capital accumulation. Under firm-specific capital, wage staggering generates more persistence only when the labor …