The Cyclical Behavior of Equilibrium Unemployment and Vacancies Across OECD Countries
Title | The Cyclical Behavior of Equilibrium Unemployment and Vacancies Across OECD Countries PDF eBook |
Author | Pedro S. Amaral |
Publisher | |
Pages | 52 |
Release | 2014 |
Genre | |
ISBN |
We show that the inability of a standardly calibrated labor search-and-matching model to account for labor market volatility extends beyond the U.S. to a set of OECD countries. That is, the volatility puzzle is ubiquitous. We argue cross-country data is helpful in scrutinizing between potential solutions to this puzzle. To illustrate this, we show that the solution proposed in Hagedorn and Manovskii (2008) continues to deliver counterfactually low volatility in countries where labor productivity persistence and/or steady-state job-finding rates are sufficiently low. Moreover, the model's ability to generate high enough volatility depends on vacancy-filling-rate levels that seem counterfactual outside the U.S.
The cyclical behavior of equilibrium unemployment and vacancies in the US and Europe
Title | The cyclical behavior of equilibrium unemployment and vacancies in the US and Europe PDF eBook |
Author | Alejandro Justiniano |
Publisher | |
Pages | 70 |
Release | 2011 |
Genre | Business cycles |
ISBN |
We set-up a real business cycle model with search and matching frictions driven by several shocks, which nests full Nash Bargaining and wage rigidity as special cases and includes other transmission mechanisms suggested by the literature for the propagation and amplification of disturbances. The model is estimated using full information methods for two Anglo-Saxon countries (the US and the UK), two Continental European countries (France and Germany) and two Scandinavian countries (Norway and Sweden). We conduct inference with mixed frequency data, combining quarterly series for unemployment, vacancies, GDP, consumption, and investment, with annual data on unemployment flows. Parameters and shocks are estimated separately for each country, which can then vary in terms of search and hiring costs, workers' bargaining power, unemployment benefits levels, wage rigidity and the stochastic properties of disturbances. Overall, the structural model accounts reasonably well for differences in labor market dynamics observed between the two sides of the Atlantic and within Europe. Our estimates indicate that there is considerable cross-country variation in the contribution of technology shocks to the cyclical fluctuations of the labor market. Technology shocks alone replicate remarkably well the volatility in vacancies, unemployment and finding probabilities observed in US, with mixed success in Europe. In contrast, matching shocks and job destruction shocks play a larger role in most European countries relative to the US.
The Cyclical Behavior of Equilibrium Unemployment and Vacancies
Title | The Cyclical Behavior of Equilibrium Unemployment and Vacancies PDF eBook |
Author | |
Publisher | |
Pages | |
Release | 2005 |
Genre | |
ISBN |
The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited
Title | The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited PDF eBook |
Author | Marcus Hagedorn |
Publisher | |
Pages | 48 |
Release | 2008 |
Genre | Business cycles |
ISBN |
The cyclical behaviour of equilibrium unemployment and vacancies revised
Title | The cyclical behaviour of equilibrium unemployment and vacancies revised PDF eBook |
Author | Marcus Hagedorn |
Publisher | |
Pages | 53 |
Release | 2008 |
Genre | |
ISBN |
The OECD Jobs Strategy Implementing the OECD Jobs Strategy Assessing Performance and Policy
Title | The OECD Jobs Strategy Implementing the OECD Jobs Strategy Assessing Performance and Policy PDF eBook |
Author | OECD |
Publisher | OECD Publishing |
Pages | 182 |
Release | 1999-09-21 |
Genre | |
ISBN | 9264173684 |
This study puts the spotlight on groups at the margin of the labour market, and looks at the policies required to better integrate them.
OECD Employment Outlook 2014
Title | OECD Employment Outlook 2014 PDF eBook |
Author | OECD |
Publisher | OECD Publishing |
Pages | 294 |
Release | 2014-09-03 |
Genre | |
ISBN | 9264215239 |
The OECD Employment Outlook 2014 includes chapters on recent labour market developments with a special section on earnings, job quality, youth employment, and forms of employment and employment protection.