Demography, capital flows and unemployment

Arbeitspapier

This paper contributes to the already vast literature on demography-induced international capital flows by examining the role of labor market imperfections and institutions. We setup a two-country overlapping generations model with search unemployment, which we calibrate on EU15 and US data. Labor market imperfections are found to significantly increase the volume of capital flows, because of stronger employment adjustments in comparison with a competitive economy. We next exploit the model to investigate how demographic asymmetries may have contributed to unemployment and welfare changes in the recent past (1950-2010). We show that a policy reform in one country also has an impact on labor markets in other countries when capital is mobile.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 6094

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Demographic Trends, Macroeconomic Effects, and Forecasts ; International Investment; Long-term Capital Movements ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Computable General Equilibrium Models
• Thema: demographics ; capital flows ; overlapping generations ; general equilibrium ; unemployment ; Kapitalmobilität ; Bevölkerungsentwicklung ; Arbeitslosigkeit ; Arbeitsmarktflexibilität ; Unvollkommener Markt ; Overlapping Generations ; Vergleich ; EU-Staaten ; USA

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Marchiori, Luca ; Pierrard, Olivier ; Sneessens, Henri R.
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/58644
• URN: urn:nbn:de:101:1-201111213217
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ