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We develop a theory of labor markets in a monetary economy with four realistic features: search frictions, worker productivity shocks, wage rigidity, and two-sided lack of commitment. Due to the non-Coasean nature of labor contracts, inefficient job separations occur in the form of endogenous...
Persistent link: https://www.econbiz.de/10014278008
Central bankers are raising interest rates on the assumption that wage-push inflation may lead to stagflation. This is … not the case. Although unemployment is low, the labor market is not 'tight'. On the contrary, we show that what matters …
Persistent link: https://www.econbiz.de/10013448558
What are the broad societal implications of inflation and unemployment? Analyzing a dataset of over 1.9 million …, we find that both inflation and unemployment have a negative link with confidence in financial institutions. While … inflation is generally unassociated with confidence in government and leadership approval, unemployment still has a strong …
Persistent link: https://www.econbiz.de/10014419497
estimates. The research period has been characterised by high labour demand, negative supply shocks, high levels of inflation …
Persistent link: https://www.econbiz.de/10014545239
Although both economists and psychologists seek to identify determinants of heterogeneity in behavior, they use different concepts to capture them. In this review we first analyze the extent to which economic preferences and psychological concepts of personality - such as the Big Five and locus...
Persistent link: https://www.econbiz.de/10009535776
This paper analyzes the relationship between unemployment and wage inflation for 10 of the euro area countries. The … combination of low wage inflation and high unemployment in Europe is usually attributed to a rise in the natural rate of … unemployment that may account for a changing pattern in the unemployment inflation trade-off. Moreover, it analyzes whether the …
Persistent link: https://www.econbiz.de/10003035532
Understanding inequality and devising policies to alleviate it was a central focus of Jan Tinbergen's lifetime research. He was far ahead of his time in many aspects of his work. This essay places his work in the perspective of research on inequality in his time and now, focusing on his studies...
Persistent link: https://www.econbiz.de/10011959398
The Global Crisis demonstrated to the world that Ratings Agencies had misled the public about the stability of financial institutions. The Finance literature had decided that it was impossible to have bubbles in financial markets and any surge in the stock market would be self-correcting. Recent...
Persistent link: https://www.econbiz.de/10011543578
uncertainty much more than the average election. The COVID-19 pandemic drove huge increases in policy uncertainty and unemployment …
Persistent link: https://www.econbiz.de/10013170258
Unemployment Insurance (UI) scheme in which job search requirements are imposed on UI recipients with hyperbolic preferences. We …
Persistent link: https://www.econbiz.de/10009721393