Arbeitspapier
Oil price shocks and labor market fluctuations
We examine the impact of real oil price shocks on labor market flows in the US We first use smooth transition regression (STR) models to investigate to what extent oil prices can be considered as a driving force of labor market fluctuations. Then we develop and calibrate a modified version of Pissarides' (2000) model with energy costs, which we simulate in response to shocks mimicking the behavior of the actual oil price shocks. We find that (i) these shocks are an important driving force of job market flows; (ii) the job finding probability is the main transmission mechanism of such shocks; and (iii) they bring a new amplification mechanism for the volatility and should thus be seen as complementary of labor productivity shocks. Overall we conclude that shocks in oil prices cannot be neglected in explaining cyclical labor adjustments in the US.
- Sprache
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Englisch
- Erschienen in
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Series: IZA Discussion Papers ; No. 5096
- Klassifikation
-
Wirtschaft
Investment; Capital; Intangible Capital; Capacity
Business Fluctuations; Cycles
Labor Turnover; Vacancies; Layoffs
Unemployment: Models, Duration, Incidence, and Job Search
- Thema
-
oil prices
unemployment
vacancies
business fluctuations
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ordóñez, Javier
Sala, Héctor
Silva, José Ignacio
- Ereignis
-
Veröffentlichung
- (wer)
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Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2010
- Handle
- URN
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urn:nbn:de:101:1-201008117756
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Ordóñez, Javier
- Sala, Héctor
- Silva, José Ignacio
- Institute for the Study of Labor (IZA)
Entstanden
- 2010