Similar Search Results

Beveridge Curve Under Endogenous Separation Model : The Role of Wage Rigidity and Match-Specific Productivity

Takano, Tetsuaki - 2023

A standard endogenous separation model developed by Mortensen and Pissarides [1994] has a drawback in replicating the negative correlation between unemployment and vacancies. To address this, I extend the model by incorporating wage rigidity and modifying the assumption about idiosyncratic...

Persistent link: https://www.econbiz.de/10014348775

Endogenous Separation, Wage Rigidity and the Dynamics of Unemployment

Tortorice, Daniel L. - 2011

This paper shows that the Mortensen-Pissarides (MP) model requires endogenous separation to explain the volatility of unemployment. I estimate a version of the MP model with wage rigidity and permanent shocks to match productivity. The model generates sufficient volatility in unemployment,...

Persistent link: https://www.econbiz.de/10013130527

Participation, Wage and Unemployment Fluctuations

Xu, Lifang - 2019

This paper studies the effects of endogenous participation on unemployment fluctuations. It shows that the wage channel is the key to understanding them. Endogenous participation makes the expected outside options of workers countercyclical. Under Nash bargaining, this induces a countercyclical...

Persistent link: https://www.econbiz.de/10012905550

The (ir)relevance of real wage rigidity for optimal monetary policy

Kohlbrecher, Britta - 2019

Real wage rigidity is known to create a substantial trade-off between inflation and employment stabilization for monetary policy in New Keynesian models with search frictions on the labor market. This paper shows that, quantitatively, this finding hinges very much on the assumption of constant...

Persistent link: https://www.econbiz.de/10012119333

Evaluating the search and matching model with sticky wages

Reicher, Christopher Phillip - 2010

Several authors have proposed staggered wage bargaining as a way to introduce sticky wages into search and matching … a series of estimated shocks from US data into a search and matching model with sticky prices and wages. I compare the … cycle volatility and matching the lack of a long-run relationship between vacancy creation and inflation. With regard to …