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How Labour Market Flexibility Affects Unemployment: Long-Term Implications of the Chain Reaction Theory

Karanassou, Marika; Snower, Dennis J. - C.E.P.R. Discussion Papers - 1998

This paper evaluates two theories of unemployment: the natural rate theory (whereby unemployment is depicted as … fluctuating around a reasonably stable natural rate) and the chain reaction theory (which views movements in unemployment as the … contrasts sharply with the natural theory, which commonly views unemployment as approaching a natural rate determined solely by …

Persistent link: https://www.econbiz.de/10005504680

A Quarterly Model of the Labour Market in Interwar Britain

Hatton, Timothy J. - C.E.P.R. Discussion Papers - 1987

The paper analyses the determinants of interwar unemployment using a previously unexploited quarterly data set for 1924 …-39. Individual equations for insured employment, insured unemployment and the nominal wage rate are estimated and tested. The results … interpretations which emphasize structural unemployment, wage rigidity or benefit-induced unemployment: this helps explain why such …

Persistent link: https://www.econbiz.de/10005656339

A Contribution to Unemployment Dynamics

Karanassou, Marika; Snower, Dennis J. - C.E.P.R. Discussion Papers - 1995

This paper views movements in unemployment as the result of the interaction between: (a) lags in labour market … decisions; and (b) labour market shocks with temporary and permanent components. Two features of unemployment dynamics are … examined: (i) `unemployment persistence', arising when temporary shocks have persistent effects on unemployment; and (ii …

Persistent link: https://www.econbiz.de/10005791454

Hiring And Firing Costs, Adverse Selection And The Persistence Of Unemployment

Kugler, Adriana D.; Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 2000

In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment …

Persistent link: https://www.econbiz.de/10005124276

Labour Market Institutions and the Cohesion of the Middle Class

Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 1995

We develop a simple model to study how relative wage rigidity affects equilibrium taxation. It is argued that relative wage rigidity, by compressing incomes within the middle class, leads to a lower degree of redistributive conflict within the politically important core of society, even though...

Persistent link: https://www.econbiz.de/10005123707

Revisiting the Case for a Populist Central Banker

Lippi, Francesco - C.E.P.R. Discussion Papers - 1999

It has been argued that the inflationary bias of discretionary monetary policy can be eliminated, and welfare maximized, by the appointment of a central banker who does not care at all about inflation (a 'populist central banker'). We show that this result hinges crucially on the assumption that...

Persistent link: https://www.econbiz.de/10005662413

Rhineland Exit?

Bovenberg, A Lans; Teulings, Coen N - C.E.P.R. Discussion Papers - 2008

We argue in favour of the shareholder model of the firm for three main reasons. First, serving multiple stakeholders leads to ill-defined property rights. What sounds like a fair compromise between stakeholders can easily evolve in a permanent struggle about the ultimate goal of the company....

Persistent link: https://www.econbiz.de/10005791558

Credit within the Firm

Guiso, Luigi; Pistaferri, Luigi; Schivardi, Fabiano - C.E.P.R. Discussion Papers - 2010

We exploit time variation in the degree of development of local credit markets and matched employer-employee data to assess the role of the firm as an internal credit market. In less developed local credit markets firms can offer a flatter wage-tenure profile than firms in more developed credit...

Persistent link: https://www.econbiz.de/10008468516

Unemployment Insurance Design: Inducing Moving and Retraining

Hassler, John; Mora, Rodríguez; Vicente, José - C.E.P.R. Discussion Papers - 2007

those may be unobservable ex-ante. The problem of characterizing constrained optimal unemployment insurance in this case has … been neglected in previous literature. We construct a model of optimal unemployment insurance where multiple incentive …-form solutions showing that when the moving/retraining incentive constraint binds, unemployment benefits should increase over the …

Persistent link: https://www.econbiz.de/10005504238

Incomplete Wage Posting

Michelacci, Claudio; Suarez, Javier - C.E.P.R. Discussion Papers - 2002

We consider a competitive search model where firms with vacancies choose between posting a wage ex-ante and bargaining it with workers ex-post. Workers apply for vacancies after observing firms' wage setting decisions, and differ in some observable but not verifiable qualifications that affect...

Persistent link: https://www.econbiz.de/10005504658