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sharp increase in the incidence of long-term unemployment (LTU) during the Great Recession. We first show that compositional … shifts in demographics, occupation, industry, region, and the reason for unemployment jointly account for very little of the … model that allows for duration dependence in the exit rate from unemployment and for transitions between employment (E …
Persistent link: https://www.econbiz.de/10013051310
Every year has large demand and supply shifts associated with the seasons, regardless of the phase of the business cycle. Based on measures dating back to the 1940s, the seasonal shifts reject the hypotheses that demand shifts affect employment outcomes significantly more in recession years than...
Persistent link: https://www.econbiz.de/10013138313
foregone unemployment insurance about equally erode the rewards from retaining a job, or starting a new one …
Persistent link: https://www.econbiz.de/10013096855
The aggregate neoclassical growth model - with a labor income tax or "labor market distortion" that began growing at the end of 2007 as its only impulse - produces time series for aggregate labor usage, consumption, investment, and real GDP that closely resemble actual U.S. time series. Of...
Persistent link: https://www.econbiz.de/10013148652
This paper presents a model in which firms recruit both unemployed and employed workers by posting vacancies. Firms act monopsonistically and set wages to retain their existing workers as well as to attract new ones. The model differs from Burdett and Mortensen (1998) in that its assumptions...
Persistent link: https://www.econbiz.de/10012759577
, which was particularly strong in the second half of the 90s, is a major aspect of the downward trends in unemployment and … and the unemployment rate, because a nonparticipant who wants to work has (i) a higher probability of entering the labor … force (compared to other nonparticipants), and (ii) a higher probability of joining unemployment conditional on entering the …
Persistent link: https://www.econbiz.de/10013021465
Before 1979, unemployment insurance (UI) benefits were not treated as taxable income in the United States. Several … has had the predicted effect of reducing unemployment duration.The study uses data on a sample of persons that filed for … presents persuasive evidence of a tax effect on unemployment duration. The 1979 policy change is estimated to have reduced …
Persistent link: https://www.econbiz.de/10013223892
states of employment, unemployment, and non-participation. The determinants of actual household transitions are then … functions show that increased unemployment among married men has a sizeable short-run effect on both participation and …
Persistent link: https://www.econbiz.de/10013224699
We study business cycle fluctuations in heterogeneous-agent general equilibrium models that feature both intensive and extensive margins of labor supply. A nonconvexity in the mapping between time devoted to work and labor services combined with idiosyncratic shocks generates operative extensive...
Persistent link: https://www.econbiz.de/10012911496
We study the effects of on-the-job skill accumulation on average hours worked by age and the volatility of hours over the life cycle in a calibrated general equilibrium model. Two forms of skill accumulation are considered: learning by doing and on-the-job training. In our economy with learning...
Persistent link: https://www.econbiz.de/10012759693