Labor market reforms increasing flexibility at the margin have been recently paying out in terms of employment growth. This paper argues that two-tier labor market reforms have a transitional honeymoon, job creating effect. In a dynamic model of labor demand under uncertainty, the paper predicts...

Following the real option literature, whether or not uncertainty shocks drive business cycles depends on the degree of adjustment frictions. The more plants freeze and remain inactive in response to increased uncertainty, the stronger the adverse effects on the economic activity. Using quarterly...

Working time account is an organization tool that allows firms to smooth their demand for hours employed. Descriptive literature suggests that working time accounts are likely to reduce turnover and inhibit increase in unemployment during recessions. In a model of optimal labour demand I show...

Working time account is an organization tool that allows firms to smooth their demand for hours employed. Descriptive literature suggests that working time accounts are likely to reduce turnover and inhibit increase in unemployment during recessions. In a model of optimal labour demand I show...

A flow model of the Dutch labour market is used to calculate the efects of autonomous labour demand and supply shocks on employment and unemployment. The model is centered around a matching function which allows for heterogeneous unemployment by taking explicitly account of POWS through various...

A flow model of the Dutch labour market is used to calculate the efects of autonomous labour demand and supply shocks on employment and unemployment. The model is centered around a matching function which allows for heterogeneous unemployment by taking explicitly account of POWS through various...