Job Turnover, Unemployment and Labor Market Institutions

Arbeitspapier

This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine the consequences of introducing an unemployment benefit, a firing cost and a downward wage rigidity. The model is able to reproduce the main cyclical properties of a typical European economy. It also suggests that downward wage rigidities, rather than unemployment benefit or firing cost, may well play a dominant role in explaining both the high unemployment rate and the cyclical properties of such an economy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 835

Classification and Topics

• Classification: Wirtschaft ; Unemployment Insurance; Severance Pay; Plant Closings ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Labor Turnover; Vacancies; Layoffs ; Wages, Compensation, and Labor Costs: Public Policy
• Subject: unemployment ; job flows dynamics ; institutions ; Arbeitsmobilität ; Konjunkturelle Arbeitslosigkeit ; Theorie der Arbeitslosigkeit ; Arbeitsuche ; Arbeitslosenversicherung ; Kündigungsschutz ; Lohnrigidität ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Joseph, Gilles ; Pierrard, Olivier ; Sneessens, Henri R.
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/20080
• Last update: 10.03.2025, 11:43 AM CET