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Monetary persistence and the labor market: A new perspective

Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis J. - 2008

that the employment rate is slow to converge to its steady state value after a monetary shock. Under reasonable … calibrations, the after-effects of a shock continue to exert an effect on the labor market even long after the shock is over. The … sluggishness of the labor market translates to the product market and thus the output effects of the monetary shock become more …

Persistent link: https://www.econbiz.de/10010277972

Monetary persistence, imperfect competition, and staggering complementarities

Merkl, Christian; Snower, Dennis J. - 2005

This paper explores the influence of wage and price staggering on monetary persistence. First, our analysis indicates that the degree of monetary persistence generated by wage vis-à-vis price staggering depends on the relative competitiveness of the labor and product markets. We show that the...

Persistent link: https://www.econbiz.de/10010277975

Quadratic labor adjustment costs and the New-Keynesian model

Lechthaler, Wolfgang; Snower, Dennis J. - 2008

We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this is sufficient to increase both, output and inflation persistence.

Persistent link: https://www.econbiz.de/10010263522

Interactions between employment and training policies

Oskamp, Frank; Snower, Dennis J. - 2007

This paper examines the interactions between employment and training policies. Their effectiveness in stimulating income may be interdependent for various important reasons. For example, the more employment policies stimulate the employment rate, the greater the length of time over which workers...

Persistent link: https://www.econbiz.de/10010272951

Unemployment accounts and employment incentives

Brown, Alessio J. G.; Orszag, Jonathan Michael; Snower, … - 2006

We explore the far-reaching implications of replacing current unemployment benefit (UB) systems by an unemployment accounts (UA) system. Under the UA system, employed people are required to make ongoing contributions to their UAs and the balances in these accounts are available to them during...

Persistent link: https://www.econbiz.de/10010272954

Institutions and training inequality

Lechthaler, Wolfgang; Snower, Dennis J. - 2007

We analyze the interaction among important institutional variables in the labor market (firing costs, minimum wages and unemployment benefits) in determining firm-provided training. We find that the institutional interactions - specifically, their degree of complementarity and substitutability -...

Persistent link: https://www.econbiz.de/10010272964

Hyperbolic discounting and the Phillips curve

Graham, Liam; Snower, Dennis J. - 2007

Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with hyperbolic discounting leads to inflation having significant long-run effects on real variables.

Persistent link: https://www.econbiz.de/10010272966

The effect of low-wage subsidies on skills and employment

Oskamp, Frank; Snower, Dennis J. - 2006

We explore the far-reaching implications of low-wage subsidies on aggregate employment. Low-wage subsidies have three important effects. First, they promote employment of unskilled workers (who tend to be the ones who earn low wages). Second, by raising the payoff of unskilled work relative to...

Persistent link: https://www.econbiz.de/10010272975

Minimum wages and firm training

Lechthaler, Wolfgang; Snower, Dennis J. - 2006

The paper analyzes the influence of minimum wages on firms' incentive to train their employees. We show that this influence rests on two countervailing effects: minimum wages (i) augment wage compression and thereby raise firms' incentives to train and (ii) reduce the profitability of employees,...

Persistent link: https://www.econbiz.de/10010273107

Increasing returns to scale and the long-run Phillips curve

Vaona, Andrea; Snower, Dennis J. - 2006

A growing body of empirical evidence shows that there exists a long-run positive tradeoff between inflation and real macroeconomic activity. Within a New Keynesian framewok, we examine how increasing returns generate a positive long-run relation between inflation and output.

Persistent link: https://www.econbiz.de/10010273150