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, recessions generate long-lasting hysteresis: persistent decreases in the employment-to-population ratio and earnings per capita …. Changes in the composition of workers explain less than half of local hysteresis. We further show that finite sample bias in … hysteresis in employment rates. …
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proximity of other labor markets, a local shock that increases unemployment may not lead to lower pay rates if employers fear … are confirmed by means of an estimation of wage curves with data for 327 regions of western Germany over the period 1990-1997 …
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, recessions generate long-lasting hysteresis: persistent decreases in the employment-to-population ratio and earnings per capita …. Changes in the composition of workers explain less than half of local hysteresis. We further show that finite sample bias in … hysteresis in employment rates …
Persistent link: https://www.econbiz.de/10012834966
The paper illustrates the effect of a permanent demand-side shock in the perturbed regions and the associated spillover …
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Exogenous shocks often impact a local labor market more than at the national level. This study improves upon the standard Difference in Difference (DD) approach by examining exogenous shocks using a Generalized Difference in Difference (GDD) econometric approach that identifies the effects of...
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