We incorporate on-the-job search (OTJS) into a real business cycle model in order to study whether OTJS increases the cyclical volatility of unemployment and vacancies. The increased search of employed workers during expansions has two effects on the unemployed: it induces firms to openmore...

Depuis le début de l’attaque américaine contre l’Irak, la perspective d’une reprise économique une fois le conflit terminé est de plus en plus évoquée. Si reprise il y a, celle-ci risque cependant d’être lente et graduelle !

Le coût du travail des peu qualifiés est un élément important pour expliquer le haut niveau du chômage en Belgique. Nous pensons qu’une réduction des cotisations patronales ciblée sur les très bas salaires stimulerait fortement l’emploi, tout en restant peu douloureuse pour le budget...

[fre] The paper analyzes the mechanisms by which policies aiming at downsizing the labour force (like early retirement policies) may in fact lead to lower employment levels, even though the equilibrium unemployment rate is decreased. Numerical examples suggest that job losses may be potentially...

We develop a DSGE model with a heterogeneous banking sector. We introduce endogenous default probabilities for both firms and banks, and allow for bank regulation and liquidity injections into the interbank market. We aim to understand the interactions between the banking sector and the rest of...

This paper re-examines the effects of population aging and pension reforms in an OLG model with labor market frictions. The most important feature brought about by labor market frictions is the connection between the interest rate and the unemployment rate. Exogenous shocks (such as aging)...

This paper reviews recent approaches to modelling the labour market, and assesses their implications for inflation dynamics through both their effect on marginal cost and on price-setting behaviour. In a search and matching environment, we consider the following modelling set-ups:...

Empirical evidence suggests that most firms operate in imperfectly competitive markets. We develop a search-matching model between wholesalers and retailers. Firms face search costs and form long-term relationships. Price bargain results in both wholesaler and retailer mark ups, which depend on...

Outre au problème de vieillissement de la population, le Luxembourg devra faire face au départ à la retraite de larges contingents de travailleurs non-résidents ainsi qu?à l?essoufflement attendu de l?immigration et de l?arrivée de futurs frontaliers. Le financement des systèmes de...

We consider a model with frictional unemployment and staggered wage bargaining where hours worked are negotiated every 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...