Sector-specific productivity shocks in a matching model

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.

MoreLess

Year of publication:	2010
Authors:	Wesselbaum, Dennis
Publisher:	Kiel : Kiel Institute for the World Economy (IfW)
Subject:	Beveridge Curve \| Matching \| Sectoral Productivity Shock

More details

Series:	Kiel Working Paper ; 1585
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	618787178 [GVK] hdl:10419/30054 [Handle] RePEc:zbw:ifwkwp:1585 [RePEc]
Classification:	E24 - Employment; Unemployment; Wages ; J24 - Human Capital; Skills; Occupational Choice; Labor Productivity ; J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets
Source:	EconStor

Persistent link: https://www.econbiz.de/10010265843