Showing 1 - 10 of 22
care costs of $1.5 to $2.7 billion for combat-induced PTSD …
Persistent link: https://www.econbiz.de/10013127317
macroeconomic volatilities. In our subsequent empirical estimations, we find that higher labor turnover costs have a statistically … theory. While labor market institutions have a large effect on output volatility, they do not seem to have much of an effect …
Persistent link: https://www.econbiz.de/10013143682
The Friedman rule states that steady-state welfare is maximized when there is deflation at the real rate of interest. Recent work by Khan et al (2003) uses a richer model but still finds deflation optimal. In an otherwise standard new Keynesian model we show that, if households have hyperbolic...
Persistent link: https://www.econbiz.de/10013125143
This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are … heterogeneous variations in the characteristics of workers and jobs, and firms face adjustment costs in responding to these …
Persistent link: https://www.econbiz.de/10013160145
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...
Persistent link: https://www.econbiz.de/10013155589
We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are … zero and the optimal volatility of inflation is an increasing function of firing costs. The optimal rule should react to …
Persistent link: https://www.econbiz.de/10013157529
puzzle is highly misleading, relying on the exogeneity of the forcing variable (e.g. output gap, marginal costs, unemployment …
Persistent link: https://www.econbiz.de/10012777470
persistence, nor output costs of disinflations. Real wage rigidities actually create a boom after a permanent reduction in the …
Persistent link: https://www.econbiz.de/10012766891
This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms' job offer and workers' job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show that...
Persistent link: https://www.econbiz.de/10013051811
This paper is the first to show theoretically and empirically how firms' production technology affects the choice of their preferred wage formation regime. Our theoretical framework predicts, first, that the larger the total factor productivity of a firm, the more likely it is to opt for...
Persistent link: https://www.econbiz.de/10013052546