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Sorting and the Output Loss due to Search Frictions

Gautier, Pieter A.; Teulings, Coen N. - CESifo - 2011

We analyze a general search model with on-the-job search and sorting of heterogeneous workers into heterogeneous jobs. This model yields a simple relationship between (i) the unemployment rate, (ii) the value of non-market time, and (iii) the max-mean wage differential. The latter measure of...

Persistent link: https://www.econbiz.de/10008853848

Wage Dispersion and Labor Turnover with Adverse Selection

Carrillo-Tudela, Carlos; Kaas, Leo - CESifo - 2011

We consider a model of on-the-job search where firms offer long-term wage contracts to workers of different ability. Firms do not observe worker ability upon hiring but learn it gradually over time. With sufficiently strong information frictions, low-wage firms offer separating contracts and...

Persistent link: https://www.econbiz.de/10009293483

Capacity Constraining Labor Market Frictions in a Global Economy

Holzner, Christian; Larch, Mario - CESifo - 2011

Convex vacancy creation costs shape firms’ responses to trade liberalization. They induce capacity constraints by increasing firms’ cost of production, leading a profit maximizing firm not to fully meet the increased foreign demand. Hence, firms will only serve a few export markets. More...

Persistent link: https://www.econbiz.de/10009320777

Trade and Unions: Can Exporters Benefit from Collective Bargaining?

Capuano, Stella; Hauptmann, Andreas; Schmerer, Jans-Jörg - CESifo - 2014

Unions are often stigmatized as being a source of inefficiency due to higher collective bargaining outcomes. This is in … to adopt collective bargaining. We rationalize those stylized facts using a partial equilibrium model that allows us to … evaluate firms’ value functions under individual or collective bargaining. Exporting further decreases average production costs …

Persistent link: https://www.econbiz.de/10011086453

Matching and Saving in Continuous Time: Theory

Bayer, Christian; Wälde, Klaus - CESifo - 2010

We analyse optimal saving of risk-averse households when labour income stochastically jumps between two states. The generalized Keynes-Ramsey rule includes a precautionary savings term. A phase diagram analysis illustrates consumption and wealth dynamics within and between states. There is an...

Persistent link: https://www.econbiz.de/10008534003

Asymmetric Capital-Tax Competition, Unemployment and Losses from Capital Market Integration

Pethig, Rüdiger; Kolleß, Frieder - CESifo - 2009

In a multi-country general equilibrium economy with mobile capital and rigid-wage unemployment, countries may differ in capital endowments, production technologies and rigid wages. Governments tax capital at the source to maximize national welfare. They account for tax base responses to their...

Persistent link: https://www.econbiz.de/10008534017

Equilibrium Unemployment with Outsourcing under Labour Market Imperfections

Koskela, Erkki; Stenbacka, Rune - CESifo - 2007

We study the various consequences of and the incentives for outsourcing. We argue that the wage elasticity of labour demand increases as a function of the share of outsourcing, which is a result consistent with existing empirical research. Furthermore, we show that a production mode with a...

Persistent link: https://www.econbiz.de/10005094289

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

Efficient Firm Dynamics in a Frictional Labor Market

Kaas, Leo; Kircher, Philipp - CESifo - 2011

product differ. We develop and analyze an alternative to the existing bargaining framework: Firms compete for labor by … size, job flows, and pay. In contrast to bargaining models, efficiency obtains on all margins of job creation and …

Persistent link: https://www.econbiz.de/10008833929

Estimating Incentive and Welfare Effects of Non-Stationary Unemployment Benefits

Launov, Andrey; Wälde, Klaus - CESifo - 2010

The distribution of unemployment duration in our equilibrium matching model with spell-dependent unemployment benefits displays a time-varying exit rate. Building on Semi-Markov processes, we translate these exit rates into an expression for the aggregate unemployment rate. Structural estimation...

Persistent link: https://www.econbiz.de/10008583707