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constraints have been essentially detrimental for employment among SMEs experiencing a negative demand shock or facing strong …
Persistent link: https://www.econbiz.de/10011785728
Labor market frictions are not the only possible factor responsible for high unemployment. Credit market imperfections, driven by microeconomic frictions and impacted upon by macroeconomic factors such as monetary policy, could also be to blame. This paper shows that labor and credit market...
Persistent link: https://www.econbiz.de/10011336864
We test whether financial fluctuations affect firms' decisions, through their impact on banks' cost of funding. We exploit two shocks to Italian bank CDS spreads and equity valuations: the 2007-2009 financial crisis and the 2010-2012 sovereign debt crisis. Using newly available data linking over...
Persistent link: https://www.econbiz.de/10010229932
argue that the German government handled the immediate response to the energy shock well, but subsequently waited too long … controls as an optimal policy response to an energy shock within a general equilibrium framework. We develop a simple … generate endogenous price uncertainty in the wake of an energy shock. We also link our analysis to the so-called sunspot …
Persistent link: https://www.econbiz.de/10014545082
heterogeneous income risk, liquid and illiquid assets, price adjustment costs, and in which households differ by their occupation …-specific skills. Labor income is a combination of endogenous occupational wages and idiosyncratic shock. Occupational reallocation and … occupation-specific infection risk and a ZLB policy and study the impact of occupational and aggregate labor supply shocks. We …
Persistent link: https://www.econbiz.de/10012651635
How does international integration affect the welfare state? Does it call for a leaner or an expanded welfare state? International integration may affect the distortions caused by welfare state activities but also the risks motivating social insurance mechanisms. This paper addresses these...
Persistent link: https://www.econbiz.de/10011406889
We estimate the changes in US male labor market risk over the last three decades in a model of endogenous labor supply … a life-cycle model with search frictions, we show that the estimated changes in risk can account for 85 percent of the … increase in within group wage inequality. The welfare costs of rising risk are small. …
Persistent link: https://www.econbiz.de/10011595910
We study workers' idiosyncratic earnings risk over the life-cycle using a German administrative data set. Positive and … incomplete markets model. Moreover, age-varying risk implies a linear increase in consumption inequality late in working life. …
Persistent link: https://www.econbiz.de/10011709932
into an i.i.d. generational consumption shock. In other words, each generation bears all of the risk associated with their … producing human capital. We also demonstrate that this attenuation effect tends to concentrate generational consumption risk … around the generation subject to the birth rate shock. In a limiting case, we show that an i.i.d birth rate shock translates …
Persistent link: https://www.econbiz.de/10011803190
for firms. We rationalize these findings in a model of risk sharing between a risk-averse firm and workers with limited …
Persistent link: https://www.econbiz.de/10015190246