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We build a small open economy, real business cycle model with labor market frictions to evaluate the role of employment protection in shaping business cycles in emerging economies. The model features matching frictions and an endogenous selection effect by which inefficient jobs are destroyed in...
Persistent link: https://www.econbiz.de/10014397095
The negative and stable relationship between an economy's aggregate demand conditions and overall unemployment is well …-documented. We show that there is a large degree of heterogeneity in the cyclical sensitivities of unemployment across worker and … economy groups. First, unemployment is more than twice as sensitive to aggregate demand in advanced as in emerging market and …
Persistent link: https://www.econbiz.de/10012796190
Persistent link: https://www.econbiz.de/10010388661
Persistent link: https://www.econbiz.de/10010389581
In this paper, we provide compelling evidence that cyclical factors account for the bulk of the post-2007 decline in the U.S. labor force participation rate. We then proceed to formulate a stylized New Keynesian model in which labor force participation is essentially acyclical during “normal...
Persistent link: https://www.econbiz.de/10012667415
unemployment on inflation, for given expected inflation, decreased until the early 1990s, but has remained roughly stable since …
Persistent link: https://www.econbiz.de/10012418077
This paper proposes a hidden state Markov model (HMM) that incorporates workers' unobserved labor market attachment into the analysis of labor market dynamics. Unlike previous literature, which typically assumes that a worker's observed labor force status follows a first-order Markov process,...
Persistent link: https://www.econbiz.de/10012155058
medium-term business cycle fluctuations in GDP, its components and the unemployment rate. Additionally, it facilitates …
Persistent link: https://www.econbiz.de/10011742886
The Great Recession pushed Japan’s unemployment rate to historic highs, but the increase has been small by …
Persistent link: https://www.econbiz.de/10014403441
.C from 1991 to 2008, we present econometric evidence that supports that changes in state-level unemployment rates are linked … causality going from mismatches and housing conditions to unemployment rates. The numerical estimates imply that the structural … unemployment rate in 2010 was about 13⁄4 percentage points higher than before the onset of the housing market meltdown at end-2006 …
Persistent link: https://www.econbiz.de/10014399412