Labor market dynamics and institutions: An evolutionary approach

Arbeitspapier

We analyse labor market dynamics with an agent based model, which replicates a set of stylized facts in the labor market as well as aggregate regularities. We are able to reproduce the Beveridge curve, job creation and destruction flows, a persistent unemployment level, and wages stickiness. On the aggregate level, we observe a self-enforcing process of real income growth and average productivity growth. Model simulations allow us study the role of dynamic interactions among agents -individuals and firms- in a changing environment shaped by institutions. The key features are the microfoundations of the processes governing the labor market, such as job search by individuals, and matching and bargaining among firms and potential employees.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: LEM Working Paper Series ; No. 2002/07

Classification and Topics

• Classification: Wirtschaft ; Labor Turnover; Vacancies; Layoffs ; Unemployment: Models, Duration, Incidence, and Job Search ; Microeconomic Analyses of Economic Development ; Labor Contracts
• Subject: unemployment ; Beveridge curve ; matching ; job creation flows ; job destruction flows ; technical change ; Arbeitsmarkttheorie ; Beveridge-Kurve ; Suchtheorie ; Produktivität ; Technischer Fortschritt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gabriele, Roberto
• Event: Veröffentlichung
• (who): Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
• (where): Pisa
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/89499
• Last update: 10.03.2025, 11:42 AM CET