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Impacts of Labor Taxation with Perfectly and Imperfectly Competitive Domestic Labor Markets under Flexible Outsourcing

Koskela, Erkki - CESifo - 2009

What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low … raising the wage tax and the tax exemption for the low-skilled workers will decrease the wage rate and increase labour demand … when the elasticity of substitution between consumption and leisure is higher (lower) than one. A higher degree of wage tax …

Persistent link: https://www.econbiz.de/10008583649

Monetary Persistence and the Labor Market : A New Perspective

Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis J. - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 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/10005859640

Endogenous Wage Indexation and Aggregate Shocks

Carrillo, Julio A.; Peersman, Gert; Wauters, Joris - CESifo - 2014

Empirical and institutional evidence finds considerable time variation in the degree of wage indexation to past … build a DSGE model with endogenous wage indexation in which utility maximizing workers select a wage indexation rule in … aggregate demand shocks dominate output fluctuations. The model’s equilibrium wage setting can explain the time variation in …

Persistent link: https://www.econbiz.de/10010877850

Land Collateral and Labor Market Dynamics in France

Kaas, Leo; Pintus, Patrick A.; Ray, Simon - CESifo - 2014

The value of land in the balance sheet of French firms correlates positively with their hiring and investment flows. To explore the relationship between these variables, we develop a macroeconomic model with firms that are subject to both credit and labor market frictions. The value of...

Persistent link: https://www.econbiz.de/10010948812

Business Cycles, Unemployment Insurance, and the Calibration of Matching Models

Costain, James S.; Reiter, Michael - CESifo - 2003

This paper points out an empirical failing of real business cycle models in which unemployment is endogenized through a matching function. One can easily choose a calibration to make the cyclical fluctuation in unemployment as large in the model as it is in the data, or to make the response of...

Persistent link: https://www.econbiz.de/10005196193

Does Short-Time Work Save Jobs? A Business Cycle Analysis

Balleer, Almut; Gehrke, Britta; Lechthaler, Wolfgang; … - CESifo - 2014

In the Great Recession most OECD countries used short-time work (publicly subsidized working time reductions) to counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important distinction to be made: While the rule-based component...

Persistent link: https://www.econbiz.de/10010743447

Cyclical Unemployment, Structural Unemployment

Diamond, Peter A. - CESifo - 2013

Whenever unemployment stays high for an extended period, it is common to see analyses, statements, and rebuttals about the extent to which the high unemployment is structural, not cyclical. This essay views the Beveridge Curve pattern of unemployment and vacancy rates and the related matching...

Persistent link: https://www.econbiz.de/10010627571

Monetary Persistence and the Labor Market: A New Perspective

Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis - CESifo - 2010

In this paper we propose a novel way to model the labor market in the context of a New-Keynesian general equilibrium model, incorporating labor market frictions in the form of hiring and firing costs. We show that such a model is able to replicate many important stylized facts of the business...

Persistent link: https://www.econbiz.de/10008572528

Fiscal Multipliers in a Two-Sector Search and Matching Model

Konstantinos, Jiang, Wei Angelopoulos; Malley, Jim - CESifo - 2015

types. We first find that, the model does a good job at matching the cyclical properties of sectoral employment and the wage …

Persistent link: https://www.econbiz.de/10011163069

Scars of Recessions in a Rigid Labor Market

Cockx, Bart; Ghirelli, Corinna - CESifo - 2015

of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working … persistently affected, but the penalty on the hourly wage (and earnings) increases with experience, and attains roughly -6% ten …

Persistent link: https://www.econbiz.de/10011200048