New Keynesian perspectives on labor market dynamics

• 成果类型: Article
• 署名作者: Sveen, Tommy; Weinke, Lutz
• 署名单位: Norges Bank; Duke University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2008.04.001
• 发表日期: 2008
• 页码: 921-930
• 关键词: unemployment; sticky prices

摘要

We find that demand shocks play an important role for business-cycle fluctuations ill unemployment and job vacancies. The reason is that those shocks give a strong incentive to demand-constrained firms to adjust production and thereby labor input. Furthermore we argue that whether real wage rigidity A la Hall [2005. Employment fluctuations With equilibrium wage stickiness. American Economic Review 95, 50-65] helps explain the remaining part of the unemployment volatility Puzzle depends critically oil assumptions regarding the form of the wage bargain between firms and Workers. Real wage rigidity tends to generate volatility in employment only in the case in which hours are chosen efficiently. If, oil the other hand, the real wage is allowed to affect firms's choices Of hours directly, the feature of real wage rigidity loses its ability to increase employment volatility. (C) 2008 Elsevier B.V. All rights reserved.