Financial Constraints, Wage Rigidity, and the Labor Market

Konferenzbeitrag

This paper studies the effects of combining financial frictions with wage rigidity in a search and matching framework. The model is able to match three empirical observations that existing search and matching models struggle to explain jointly: the cyclical component of the unemployment rate is positively skewed, the number of hires tends to increase in recessions, and the correlation between vacancies and unemployment is highly negative.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Labor Search ; No. G05-V1

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Macroeconomics: Consumption, Saving, Production, Employment, and Investment: Forecasting and Simulation: Models and Applications ; Business Fluctuations; Cycles ; Financial Markets and the Macroeconomy ; Labor Turnover; Vacancies; Layoffs ; Unemployment: Models, Duration, Incidence, and Job Search

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Föll, Tobias
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel, Hamburg
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/168080
• Last update: 10.03.2025, 11:44 AM CET