Arbeitspapier

Endogenous Market Structures and Labor Market Dynamics

We propose a model characterized by strategic interactions among an endogenous number of producers and search and matching frictions in the labor market. In line with U.S. data: (i) new firms account for a relatively small share of overall employment, but they create a relevant fraction of new jobs; (ii) firms’ entry is procyclical; (iii) price mark ups are countercyclical, while aggregate profits are procyclical. In response to a technology shock the labor share decreases on impact and overshoots its long run level. Also the propagation on labor market variables is stronger than in the standard search model. We argue that the countercyclicality of the price mark up is the key mechanism for our results.

Sprache
Englisch

Erschienen in
Series: Quaderni di Dipartimento ; No. 155

Klassifikation
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Business Fluctuations; Cycles
Production, Pricing, and Market Structure; Size Distribution of Firms
Thema
Endogenous Market Structures
Job Creation
Firms’ Entry
Search and Matching Frictions

Ereignis
Geistige Schöpfung
(wer)
Colciago, Andrea
Rossi, Lorenza
Ereignis
Veröffentlichung
(wer)
Università degli Studi di Pavia, Dipartimento di Economia Politica e Metodi Quantitativi (EPMQ)
(wo)
Pavia
(wann)
2011

Handle
Letzte Aktualisierung
12.07.2024, 13:23 MESZ

Objekttyp

  • Arbeitspapier

Beteiligte

  • Colciago, Andrea
  • Rossi, Lorenza
  • Università degli Studi di Pavia, Dipartimento di Economia Politica e Metodi Quantitativi (EPMQ)

Entstanden

  • 2011

Ähnliche Objekte (12)