Understanding Labour Market Frictions: A Tobinâ€™s Q Approach

Labour market friction is viewed as the Tobinâ€™s Q of an employed worker as opposed to the position of the Beveridge curve. This Tobinâ€™s Q is inversely proportional to the average quality of the match between employers and workers. Based on this measure, I find that the labour market friction has a procyclical trend in the US, which is indicative of the fact that firms compromise on the quality of the skill match during an expansion.

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Year of publication:	2007-02-02
Authors:	Basu, Parantap
Institutions:	Money Macro and Finance Research Group
Subject:	Intangible Capital \| Skill matching \| Human capital

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Extent:	application/pdf
Series:	Money Macro and Finance (MMF) Research Group Conference 2006.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series 2006 MMF Conference Papers Number 35
Classification:	G12 - Asset Pricing ; D92 - Intertemporal Firm Choice and Growth, Investment, or Financing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004978133