Similar Search Results

Arseneau, David M.; Epstein, Brendan - 2018

This paper presents a model in which mismatch employment arises in a constrained efficient equilibrium. In the decentralized economy, however, mismatch gives rise to a congestion externality whereby heterogeneous job seekers fail to internalize how their individual actions affect the labor...

Persistent link: https://www.econbiz.de/10011932219

The cyclical behavior of unemployment and wages under information frictions

Morales-Jimenez, Camilo - 2017

I propose a new mechanism for sluggish wages based on workers' noisy information about the state of the economy. Wages … higher wages. This increases firms' incentives to post more vacancies, which makes unemployment volatile and sensitive to … aggregate shocks. The model is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment …

Persistent link: https://www.econbiz.de/10011709249

Racial gaps in labor market outcomes in the last four decades and over the business cycle

Cajner, Tomaz; Radler, Tyler; Ratner, David D.; … - 2017

We examine racial disparities in key labor market outcomes for men and women over the past four decades, with a special emphasis on their evolution over the business cycle. Blacks have substantially higher and more cyclical unemployment rates than whites, and observable characteristics can...

Persistent link: https://www.econbiz.de/10011710085

Firm leverage, labor market size, and employee pay

Dore, Timothy E.; Zarutskie, Rebecca - 2017

We provide new estimates of the wage costs of firms' debt. Our empirical approach exploits within-firm geographical variation in workers' expected unemployment costs due to variation in local labor market size and uses a large representative sample of public firms. We find that, following an...

Persistent link: https://www.econbiz.de/10011710130