We propose a Bayesian VAR model with stochastic volatility and time varying skewness to estimate the degree of labour … at risk in the euro area and in the United States. We model the asymmetry of the shocks to changes in the unemployment … rate as a function of real activity and financial risk factors. We find that the conditional distribution of the changes in …

the workers' share of surplus is high. This implies that optimal inflation volatility is U-shaped with respect to workers …

period. The workers' bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence …. The closer to zero this parameter, (i) the more firms adjust on the intensive margin, reducing employment volatility, (ii … the new entrants wage rigidity required to match observed unemployment volatility …

complete markets for aggregate risk. We show that, when borrowers can hedge against aggregate shocks at fair prices, the … volatility of endogenous variables becomes identical to the first best in the absence of credit constraints. The collateral …

In this paper we analyze empirically how labor market institutions influence business cycle volatility in a sample of … protection legislation appear to play a limited role for output volatility. We also find some evidence suggesting that highly … coordinated wage bargaining systems have a dampening impact on inflation volatility …