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More on Unemployment and Vacancy Fluctuations

Mortensen, Dale; Nagypal, Eva - In: Review of Economic Dynamics 10 (2007) 3, pp. 327-347

-finding rate to the wage built into the Nash bargaining mechanism assumed to determine wages in the model, we argue that he and … others overemphasize the need for wage rigidity to explain the data on labor-market fluctuations. Indeed, a modified version …

Persistent link: https://www.econbiz.de/10005090947

Bonus question : does flexible incentive pay dampen unemployment dynamics?

Gaur, Meghana; Grigsby, John; Hazell, Jonathon; Ndiaye, … - 2023

We introduce dynamic incentive contracts into a model of unemployment dynamics and present three results. First, wage …-order equivalent in an economy with flexible incentive pay and without bargaining, vis-a-vis an economy with rigid wages. Second, wage …% of wage cyclicality in the data arises from incentives. A standard model without incentives calibrated to weakly …

Persistent link: https://www.econbiz.de/10014390530

Labor Market Dynamics Under Long-Term Wage Contracting

Rudanko, Leena - 2009

Recent research seeking to explain the strong cyclicality of US unemployment emphasizes the role of wage rigidity. This … paper proposes a micro-founded model of wage rigidity - an equilibrium business cycle model of job search, where risk … neutral firms post optimal long-term contracts to attract risk averse workers. Equilibrium contracts feature wage smoothing …

Persistent link: https://www.econbiz.de/10012764111

Aggregate and Idiosyncratic Risk in a Frictional Labor Market

Rudanko, Leena - 2011

workers with limited ability to smooth consumption. I show that this leads to a form of equilibrium wage rigidity, as the … wage offers, and hence also the offers that employers find profitable to make. In the model risk-averse entrepreneurs use …

Persistent link: https://www.econbiz.de/10012713795

The causes and economic consequences of envy

Cabrales, Antonio - In: SERIEs : Journal of the Spanish Economic Association 1 (2010) 4, pp. 371-386

: workplace skill segregation, gradual promotions, wage increases that have no relation with productivity and downward wage … considered in their theoretical and empirical models. -- envy ; interdependent preferences ; skill segregation ; wage dynamics … ; wage dispersion ; internal labor market ; recursive contracts …

Persistent link: https://www.econbiz.de/10009355901

Le marché du travail dans la crise : un cadrage statistique

Marchand, Olivier; Minni, Claude - In: Revue de l'OFCE n° 115 (2010) 4, pp. 63-80

The economic crisis of 2008-2009, the most important that France knew since the Second world war, had a significant impact on the employment situation but, in relation with the fall of the production, the observed destructions of jobs were less large this time than during the recession of...

Persistent link: https://www.econbiz.de/10008765862

Employment protection in dual labor markets : any amplification of macroeconomic shocks?

Lochner, Benjamin - 2014

Although labor market duality is a widespread phenomenon in many OECD countries, there is yet no research consent on the effects of duality on labor market dynamics and performance. Against this background, using a New Keynesian model with unemployment, this paper theoretically investigates the...

Persistent link: https://www.econbiz.de/10010439587