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The quality-adjusted cyclical price of labor

Bils, Mark; Kudlyak, Marianna; Lins, Paulo - 2023

Typical measures of wages, such as average hourly earnings, fail to capture cyclicality in the effective cost of labor in the presence of (i) cyclical fluctuations in the quality of worker-firm matches, or (ii) wages being smoothed within employment matches. To address both concerns, we estimate...

Persistent link: https://www.econbiz.de/10014248987

On the introduction of firing costs

Ahrens, Steffen; Wesselbaum, Dennis - 2009

This paper provides a survey of the recent literature about firing costs and discusses the transmission channels of firing costs in a partial equilibrium context. In addition, we expand our analysis two types of firing costs in a New Keynesian model with purely endogenous separations. We further...

Persistent link: https://www.econbiz.de/10003884839

Doves for the rich, hawks for the poor? : distributional consequences of monetary policy

Gornemann, Nils; Küster, Keith; Nakajima, Makoto - 2016

We build a New Keynesian business-cycle model with rich household heterogeneity. A central feature is that matching frictions render labor-market risk countercyclical and endogenous to monetary policy. Our main result is that a majority of households prefer substantial stabilization of...

Persistent link: https://www.econbiz.de/10011563007

Firing costs in a business cycle model with endogenous separations

Wesselbaum, Dennis - 2010

This paper introduces productivity-dependent firing costs into an otherwise standard endogenous separations matching model. We suggest an alternative to the standard fix cost approach and account for empirical evidence emphasizing that firing costs vary across workers. We show that the model...

Persistent link: https://www.econbiz.de/10011452195

Sector-specific productivity shocks in a matching model

Wesselbaum, Dennis - 2010

Endogenous separation matching models have the shortcoming that they are barely able to replicate the Beveridge curve (i.e. the negative correlation between unemployment and vacancies) and business cycle statistics jointly. This paper builds upon the sectoral shock literature and combines its...

Persistent link: https://www.econbiz.de/10011452403

Firing costs in a New Keynesian model with endogenous separations

Wesselbaum, Dennis - 2009

This paper introduces productivity dependent firing costs in an endogenous separation New Keynesian model. By strictly respecting the bonding critique, we show that firing costs tend to increase the performance of the model along the labor market dimension but fail along the persistence...

Persistent link: https://www.econbiz.de/10003878211

Monetary policy rules under bounded rationality

Dobrew, Michael; Gerke, Rafael; Kienzler, Daniel; … - 2023

strategies with a strong history dependence lose their advantage over inflation targeting in mitigating a demand …-driven recessions when interest rates are constrained by the ELB. For supply shocks, inflation t argeting o utperforms h istory …-dependent r ules f or a s ufficiently high degree of BR. An exponential average inflation targeting rule, which features a …

Persistent link: https://www.econbiz.de/10014320809

Instability and indeterminacy in a simple search and matching model

Krause, Michael; Lubik, Thomas A. - 2010

We demonstrate the possibility of indeterminacy and non-existence of equilibrium dynamics in a standard business cycle model with search and matching frictions in the labor market. Our results arise for empirically plausible parametrizations and do not rely upon a mechanism such as increasing...

Persistent link: https://www.econbiz.de/10008779851

The macro-dynamics of sorting between workers and firms

Lise, Jeremy; Robin, Jean-Marc - 2013

We develop an equilibrium model of on-the-job search with ex-ante heterogeneous workers and firms, aggregate uncertainty and vacancy creation. The model produces rich dynamics in which the distributions of unemployed workers, vacancies and worker-firm matches evolve stochastically over time. We...

Persistent link: https://www.econbiz.de/10009785890

Heterogeneity in the cyclical sensitivity of job-to-job flows

Schaffner, Sandra - 2009

Although the cyclical aspects of worker reallocation are investigated in numerous studies, only scarce empirical evidence exists for Germany. Kluve, Schaffner, and Schmidt (2009) emphasize the heterogeneity of cyclical influences for different subgroups of workers, defined by age, gender and...

Persistent link: https://www.econbiz.de/10003861416