Recent empirical evidence suggests that a positive technology shock leads to a decline in labor inputs. However, the standard real business cycle model fails to account for this empirical regularity. Can the presence of labor market frictions address this problem without otherwise altering the...

We explore the role of real wage dynamics in a New Keynesian business cycle model with search and matching frictions in the labor market. Both job creation and destruction are endogenous. We show that the model generates counterfactual inflation and labor market dynamics. In particular, it fails...

The issue of the impact of trade on specialisation structures and the effects of trade liberalisation on employment and labour markets has been intensively discussed in the recent literature on trade liberalisation and globalisation. In Europe this debate has gained new momentum in the...

We consider the issue of steady-state optimal factor taxation in a Ramsey-type dynamic general equilibrium setting with two distinct distortions: i) taxes on capital and labour are the only available tax instruments for raising revenues, and ii) labour markets are subject to a static...

In this paper we incorporate a labor market with matching frictions and wage rigidities into the New Keynesian business cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions affect the transmission process of monetary policy. The...

Dieser Beitrag nimmt aus theoretischer und ökonometrischer Sicht zu der Kontroverse über die Bedeutung der qualifikatorischen Lohnstruktur zur Erklärung der Beschäftigungsstruktur Stellung. Basierend auf einer Einteilung in drei Qualifikationsgruppen zeigt sich empirisch, dass die Entlohnung...

This paper evaluates the appropriateness of the standard methodologies and the quality of the data frequently used to analyse labour market dynamics in Europe. Our results indicate that, due to recall error and heterogeneous survey design, the retrospective approach tends to result in a...

The literature on unemployment has mostly focused on labor market issues while the impact of capital formation is largely neglected. Job-creation is often thought to be a matter of encouraging more employment on a given capital stock. In contrast, this paper explicitly deals with the long-run...