This paper connects two salient economic features: (i) Fiscal shocks have asymmetric effects across business cycle phases (Gechert et al., 2019); (ii) Okun's coefficient is time varying and may be unstable. The intertwined dynamic behavior of fiscal shocks and unemployment-output trade-offs are...

The study looks at the implications of product market competition and investment for price setting, wage bargaining and thereby for equilibrium unemployment in an economy with product and labour market imperfections.We show that intensified product market competition will reduce equilibrium...

Little is known so far about how the corona crisis has changed search processes in the labour market. We provide insights on labour market competition, reallocation of applications and potential sullying effects by analysing data from the LinkedIn professional network for Germany. We find that...

We bring the notion of connectedness (Diebold and Yilmaz, 2012) to a set of two critical macroeconomic variables as inflation and unemployment. We focus on the G7 economies plus Spain, and use monthly data –high-frequency data in a macro setting– to explore the extent and consequences of...

This paper aims at identifying the labour share (wage-productivity gap) as a major factor inthe evolution of inequality and employment. To this end, we use annual data for the US, UKand Sweden over the past forty years and estimate country-specific systems of labourdemand and Gini coefficient...

We combine profit sharing and outsourcing, if the wage for worker is decided by a labor unionto analyze how does the implementation of profit sharing affect individual effort and thebargained wage and thus outsourcing? We find that profit sharing and the wage level havean individual...

What are the impacts of labor tax reform on wage setting and employment to keep therelative tax burden per low-skilled and high-skilled workers constant in the case ofheterogenous domestic labor markets, i.e. imperfect competition in low-skilled labor andperfect competition in high-skilled labor...

We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment in dual labor markets. Outsourcing promotes wage dispersion between the high-skilled and low-skilled workers. Higher domestic low-skilled wage tax, higher payroll tax and lower...

We analyze the following questions associated with outsourcing and profit sharing under imperfect labour markets. How does strategic outsourcing influence wage formation, profit sharing and employee effort when firms commit to optimal profit sharing before wage formation or decide for profit...

This paper takes a fresh look at the analysis of labour market dynamics and argues thatcapital accumulation plays a fundamental role in shaping unemployment movements. Thisrole has generally been examined by considering indirect transmission channels of thecapital stock effects, i.e. using...