Endogenous separations, wage rigidities and employment volatility

Arbeitspapier

We show that in micro data, as well as in a search and matching model with endogenous separations and rigid wages, separations and hence employment volatility are non-neutral to wage rigidities of incumbent workers. In contrast to when all wages are flexible, the standard deviation of unemployment in a model with rigid wages for incumbent workers (only) matches the standard deviation in the data. Thus, the degree of wage rigidity for newly hired workers is not a sufficient statistic for determining the effect of wage rigidities on macroeconomic outcomes in this class of models.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 2016:12

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Labor Turnover; Vacancies; Layoffs ; Unemployment: Models, Duration, Incidence, and Job Search ; Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
• Thema: Search and matching ; Unemployment volatility puzzle ; Wage rigidities ; Job Destruction

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Carlsson, Mikael ; Westermark, Andreas
• Ereignis: Veröffentlichung
• (wer): Uppsala University, Department of Economics
• (wo): Uppsala
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/168403
• URN: urn:nbn:se:uu:diva-302112
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ