Showing 1 - 6 of 6
We study whether segmented labor markets with flexibility at the margin (e.g., just affecting fixed-term employees) can achieve similar volatility than fully deregulated labor markets. Flexibility at the margin produces a gap in separation costs among matched workers that cause fixed-term...
Persistent link: https://www.econbiz.de/10013324855
Persistent link: https://www.econbiz.de/10009753824
Pissarides (2009) has argued that the standard search model with sunk fixed matching costs increases unemployment volatility without introducing an unrealistic response of wages of new matches to productivity shocks. We revise the role of matching costs and show that when these costs are not...
Persistent link: https://www.econbiz.de/10013109616
We study the business cycle behavior of segmented labor markets with flexibility at the margin (e.g., just affecting fixed-term employees) and ask whether these types of labor markets can display similar volatilities as fully deregulated ones. We present a matching model with temporary and...
Persistent link: https://www.econbiz.de/10012754818
This paper extends the standard matching model by introducing a gap in separation costs between entrant and incumbent workers. We show that when this gap is omitted from the model, these costs do not improve the labor market volatility without introducing unrealistic unemployment responses to...
Persistent link: https://www.econbiz.de/10012764001
Persistent link: https://www.econbiz.de/10009714109