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An Estimated Small Open Economy Model with Labour Market Frictions

Sheen, Jeffrey - 2013

We estimate small open economy models with involuntary unemployment using Australian data from 1993 to 2007, focusing on hiring costs and real wage rigidity. We find a strong preference for models with hiring costs, which account for 0.97% of GDP. The data favor models with real over nominal...

Persistent link: https://www.econbiz.de/10013087292

Italian labour frictions and wage rigidities in an estimated DSGE

Diwambuena, Josué; Fonseca, Raquel; Schubert, Stefan Franz - 2021

economic fluctuations across horizons. Second, matching efficiency and wage bargaining shocks are significant sources of …

Persistent link: https://www.econbiz.de/10012697886

On-the-Job Search and Labor Market Reallocation

Tasci, Murat - 2008

This paper studies amplification of productivity shocks in labor markets through on-the-job-search. There is incomplete information about the quality of the employee-firm match which provides persistence in employment relationships and the rationale for on-the-job search. Amplification arises...

Persistent link: https://www.econbiz.de/10012723659

Incorporating Labour Market Frictions into an Optimising-Based Monetary Policy Model

Moyen, Stephane - 2010

This paper examines the effects of introducing a non Walrasian labour market into the "New Neoclassical Synthesis'' framework. A dynamic stochastic general equilibrium model is formulated, solved, and calibrated in order to evaluate its ability to replicate the main features of the Euro area...

Persistent link: https://www.econbiz.de/10013135025

Reciprocity and matching frictions

Wesselbaum, Dennis - 2010

We build a RBC endogenous separation matching model and introduce efficiency wages along the lines of Akerlof (1982 …). While the standard endogenous separation matching model reveals shortcomings in explaining correlations and volatilities … consistently enhance the performance of the (endogenous separation) matching model. -- Efficiency Wages ; Endogenous Separations …

Persistent link: https://www.econbiz.de/10003952784

The (Ir)Relevance of Real Wage Rigidity in the New Keynesian Model with Search Frictions

Krause, Michael U.; Lubik, Thomas A. - 2004

We explore the role of real wage dynamics in a New Keynesian business cycle model with search and matching frictions in …

Persistent link: https://www.econbiz.de/10014071151

Efficient mismatch

Arseneau, David M.; Epstein, Brendan - 2018

This paper presents a model in which mismatch employment arises in a constrained efficient equilibrium. In the decentralized economy, however, mismatch gives rise to a congestion externality whereby heterogeneous job seekers fail to internalize how their individual actions affect the labor...

Persistent link: https://www.econbiz.de/10011932219

How Cyclical Is the User Cost of Labor?

Kudlyak, Marianna - 2024

In employment relationships, a wage is an installment payment on an implicit long-term agreement between a worker and a firm. The price of labor that impacts firm's hiring decisions, instead, reflects the hiring wage as well as the impact of economic conditions at the time of hiring on future...

Persistent link: https://www.econbiz.de/10014533978

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/10014296768

Wage Rigidity and Job Creation

Haefke, Christian; Sonntag, Marcus; van Rens, Thijs - Institute for the Study of Labor (IZA) - 2008

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume wages are rigid. We explore whether this explanation is consistent with the data. We show that the wage of newly hired workers, unlike the aggregate wage, is volatile and...

Persistent link: https://www.econbiz.de/10005233819