Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Employment Wage And Productivity Dynamics In An Equilibrium Business Cycle Model With Heterogeneous Labor PDF full book. Access full book title Employment Wage And Productivity Dynamics In An Equilibrium Business Cycle Model With Heterogeneous Labor.
| Author | : Eswar Prasad |
| Publisher | : |
| Total Pages | : 258 |
| Release | : 1992 |
| Genre | : Business cycles |
| ISBN | : |
| Author | : Robert Shimer |
| Publisher | : Princeton University Press |
| Total Pages | : 189 |
| Release | : 2010-04-12 |
| Genre | : Business & Economics |
| ISBN | : 1400835232 |
Labor Markets and Business Cycles integrates search and matching theory with the neoclassical growth model to better understand labor market outcomes. Robert Shimer shows analytically and quantitatively that rigid wages are important for explaining the volatile behavior of the unemployment rate in business cycles. The book focuses on the labor wedge that arises when the marginal rate of substitution between consumption and leisure does not equal the marginal product of labor. According to competitive models of the labor market, the labor wedge should be constant and equal to the labor income tax rate. But in U.S. data, the wedge is strongly countercyclical, making it seem as if recessions are periods when workers are dissuaded from working and firms are dissuaded from hiring because of an increase in the labor income tax rate. When job searches are time consuming and wages are flexible, search frictions--the cost of a job search--act like labor adjustment costs, further exacerbating inconsistencies between the competitive model and data. The book shows that wage rigidities can reconcile the search model with the data, providing a quantitatively more accurate depiction of labor markets, consumption, and investment dynamics. Developing detailed search and matching models, Labor Markets and Business Cycles will be the main reference for those interested in the intersection of labor market dynamics and business cycle research.
| Author | : Mr.Eswar Prasad |
| Publisher | : International Monetary Fund |
| Total Pages | : 30 |
| Release | : 1995-11-01 |
| Genre | : Business & Economics |
| ISBN | : 1451854439 |
This paper extends the equilibrium business cycle framework to incorporate ex ante skill heterogeneity among workers. Consistent with the empirical evidence, skilled and unskilled workers in the model face the same degree of cyclical variation in real wages although unskilled workers are subject to substantially higher procyclical variation in employment. Systematic cyclical changes in the average skill level of employed workers are shown to induce bias in aggregate measures of cyclical variation in the labor input, productivity, and the real wage. The introduction of skill heterogeneity improves the model’s ability to match the empirical correlation between total hours and the real wage but the correlation between total hours and labor productivity remains higher than in the data.
| Author | : Henning Bunzel |
| Publisher | : Emerald Group Publishing |
| Total Pages | : 613 |
| Release | : 2006-03-30 |
| Genre | : Business & Economics |
| ISBN | : 0444520899 |
Selected papers from a conference held in honour of Professor Dale T. Mortensen upon the occasion of his 65th birthday. It includes papers on some of Professor Dale T. Mortensen's current research topics, as well as additional theoretical papers, and micro- and macro-econometric papers.
| Author | : Melvyn G. Coles |
| Publisher | : |
| Total Pages | : 29 |
| Release | : 2011 |
| Genre | : Economics |
| ISBN | : |
A rich but tractable variant of the Burdett-Mortensen model of wage setting behavior is formulated and a dynamic market equilibrium solution to the model is defined and characterized. In the model, firms cannot commit to wage contracts. Instead, the Markov perfect equilibrium to the wage setting game, characterized by Coles (2001), is assumed. In addition, firm recruiting decisions, firm entry and exit, and transitory firm productivity shocks are incorporated into the model Given that the cost of recruiting workers is proportional to firm employment, we establish the existence of an equilibrium solution to the model in which wages are not contingent on firm size but more productive employers always pay higher wages. Although the state space, the distribution of workers over firms, is large in the general case, it reduces to a scalar that can be interpreted as the unemployment rate in the special case of homogenous firms. Furthermore, the equilibrium is unique. As the dimension of the state space is equal to the number of firms types in general, an (approximate) equilibrium is computable -- National Bureau of Economic Research web site.
| Author | : Mitsuhiko Iyoda |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 175 |
| Release | : 2012-12-06 |
| Genre | : Business & Economics |
| ISBN | : 9401153760 |
The purpose of this book is to explain the changes in specific macroeconomic variables such as the relative share of labour, the profit rate and the real wage rate in advanced capitalist economies, in relation to the influence of the business cycle in income distribution. To explain these changes the author examines three types of theory - Kaldorian theory, the Real Business Cycle theory, and the new Keynesian theory - with a specific focus on Kaldor's approach.
| Author | : Jeremy Lise |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2013 |
| Genre | : Economics |
| ISBN | : |
We develop an empirical search-matching model which is suitable for analyzing the wage, employment and welfare impact of regulation in a labor market with heterogeneous workers and jobs. To achieve this we develop an equilibrium model of wage determination and employment which extends the current literature on equilibrium wage determination with matching and provides a bridge between some of the most prominent macro models and microeconometric research. The model incorporates productivity shocks, long-term contracts, on-the-job search and counter-offers. Importantly, the model allows for the possibility of assortative matching between workers and jobs due to complementarities between worker and job characteristics. We use the model to estimate the potential gain from optimal regulation and we consider the potential gains and redistributive impacts from optimal unemployment insurance policy. Here optimal policy is defined as that which maximizes total output and home production, accounting for the various constraints that arise from search frictions. The model is estimated on the NLSY using the method of moments.
| Author | : J. C. van Ours |
| Publisher | : North Holland |
| Total Pages | : 408 |
| Release | : 1993 |
| Genre | : Business & Economics |
| ISBN | : |
The new economics of labor demand and personnel is presented in this collection of 14 original essays. The main purpose of the volume is to bridge the existing knowledge application gap. Particular attention is paid to nonlinear labor demand dynamics and equilibrium models for job flows, search, and wage growth. At the end of each paper a comment by an expert reviewer is provided.
| Author | : Daniele Tavani |
| Publisher | : |
| Total Pages | : 40 |
| Release | : 2018 |
| Genre | : |
| ISBN | : |
I study a model of growth and income distribution in which workers and firms bargain à la Nash (Econometrica 18(2):155-162, 1950) over wages and productivity gains, taking into account the trade-offs faced by firms in choosing factor- augmenting technologies. The aggregate environment resulting from self-interested, objective function-maximizing decision rules on wages, productivity gains, savings, and investment, is described by a two-dimensional dynamical system in the employment rate and output/capital ratio. The economy converges cyclically to a long-run equilibrium involving a Harrod-neutral profile of technical change, a constant rate of employment of labor, and constant input shares. The type of oscillations predicted by the model is qualitatively consistent with the available data on the United States (1963-2003), replicates the dynamics found in earlier models of growth cycles such as Goodwin (A growth cycle, in C.H. Feinstein (ed). Socialism, Capitalism and Economic Growth. Cambridge University Press, Cambridge 1967); Shah and Desai (Econ J 91:1006-1010, 1981); van der Ploeg (J Macroecon 9:1-12, 1987); Flaschel (J Econ: Zeitschrift für Nationalökonomie 44:63-69, 1984) and Sportelli (J Econ: Zeitschrift für Nationalökonomie 61(1):35-64, 1995), and can be verified numerically in simulations. Institutional change, as captured by variations in workers' bargaining power, has a positive effect on the long-run rate of growth of output per worker but a negative effect on long-run employment. Economic policy can also affect the growth and distribution pattern through changes in the unemployment compensation, which also have a positive long-run impact on labor productivity growth but a negative long-run impact on employment. In both cases, employment can overshoot its new equilibrium value along the transitional dynamics.
| Author | : United States. Bureau of Employment Security |
| Publisher | : |
| Total Pages | : 358 |
| Release | : 1960 |
| Genre | : Unemployed |
| ISBN | : |
