Similar Search Results

The Macroeconomics of the Labor Market: Three Fundamental Views

Karanassou, Marika; Sala, Hector; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 2006

We distinguish and assess three fundamental views of the labor market regarding the movements in unemployment: (i) the … that all the short-run fluctuations automatically turn into long-run changes in the unemployment rate. We assert the …

Persistent link: https://www.econbiz.de/10005763692

Worker Identity, Employment Fluctuations and Stabilization Policy

Snower, Dennis J.; Lechthaler, Wolfgang - Institute for the Study of Labor (IZA) - 2013

This paper provides a model of "social hysteresis" whereby long, deep recessions demotivate workers and thereby lead them to change their work ethic. In switching from a pro-work to an anti-work identity, their incentives to seek and retain work fall and consequently their employment chances...

Persistent link: https://www.econbiz.de/10010884315

Making Work Pay for the Elderly Unemployed: Evaluating Alternative Policy Reforms for Germany

Haan, Peter; Steiner, Viktor - Institute for the Study of Labor (IZA) - 2006

We evaluate three policy reforms targeted at older unemployed people: (i) an hourly wage subsidy, (ii) an in-work credit, and (iii) a subsidy of social security contributions on low wages. The work incentive, labour supply and welfare effects of these hypothetical reforms are analysed on the...

Persistent link: https://www.econbiz.de/10005822612

Unemployment Invariance

Karanassou, Marika; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 2002

This paper provides a critique of the "unemployment invariance hypothesis," according to which the behavior of the … labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity, and … equilibrating mechanisms to ensure unemployment invariance and that other markets may perform part of the equilibrating process as …

Persistent link: https://www.econbiz.de/10005822664

An Incentive Theory of Matching

Brown, Alessio J. G.; Merkl, Christian; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 2009

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are heterogeneous variations in the characteristics of workers and jobs, and firms face adjustment costs in responding to these variations. Matches and separations are described...

Persistent link: https://www.econbiz.de/10004961441

‘Marginal Employment’ and the Demand for Heterogenous Labour: Empirical Evidence from a Multi-Factor Labour Demand Model for Germany

Freier, Ronny; Steiner, Viktor - Institute for the Study of Labor (IZA) - 2007

We develop a structural multi-factor labour demand model which distinguishes between eight labour categories including non-standard types of employment such as marginal employment. The model is estimated for both the number of workers and total working hours using a new panel data set. For...

Persistent link: https://www.econbiz.de/10005703681

Escaping the Unemployment Trap: The Case of East Germany

Merkl, Christian; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 2008

This paper addresses the question of why high unemployment rates tend to persist even after their proximate causes have …

Persistent link: https://www.econbiz.de/10005822417

A Theory of Wage Adjustment under Loss Aversion

Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 2014

We present a new theory of wage adjustment, based on worker loss aversion. In line with prospect theory, the workers' perceived utility losses from wage decreases are weighted more heavily than the perceived utility gains from wage increases of equal magnitude. Wage changes are evaluated...

Persistent link: https://www.econbiz.de/10011105061

Monetary Persistence and the Labor Market: A New Perspective

Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 2008

It is common knowledge that the standard New Keynesian model is not able to generate a persistent response in output to temporary monetary shocks. We show that this shortcoming can be remedied in a simple and intuitively appealing way through the introduction of labor turnover costs (such as...

Persistent link: https://www.econbiz.de/10005761760

The Caring Hand that Cripples: The East German Labor Market After Reunification (Detailed Version)

Snower, Dennis J.; Merkl, Christian - Institute for the Study of Labor (IZA) - 2006

underutilization, and unemployment arising from the decline of the tradable sector. …

Persistent link: https://www.econbiz.de/10005762337