Sector-specific productivity shocks in a matching model

by Dennis Wesselbaum

Shocks driving the business cycle have different effects on low-skilled and high-skilled workers. This paper studies the effects of temporary and permanent sector-specific shocks in a New Keynesian matching model. We show that temporary sector-specific shocks have reallaction and aggregate effects. Permanent shocks explain wedges in real wages and different performances in labor markets. Furthermore, the model is able to replicate an aggregate Beveridge curve. -- Beveridge Curve ; Matching ; Sectoral Productivity Shock

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Year of publication:	2010
Authors:	Wesselbaum, Dennis
Publisher:	Kiel : Kiel Inst. for the World Economy
Subject:	Beveridge-Kurve \| Beveridge curve \| Produktivität \| Productivity \| Schock \| Shock \| Branche \| Economic sector \| Neoklassische Synthese \| Neoclassical synthesis \| Matching \| Zeitökonomie \| Economy of time \| Qualifikation \| Occupational qualification \| Allokation \| Allocation \| Theorie \| Theory