The (ir)relevance of real wage rigidity in the New Keynesian model with search frictions

• 成果类型: Article
• 署名作者: Krause, Michael U.; Lubik, Thomas A.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Richmond; Deutsche Bundesbank
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.12.001
• 发表日期: 2007
• 页码: 706-727
• 关键词: Labor market; real wage; search and matching; new Keynesian model; Beveridge curve

摘要

We develop a New Keynesian model with search and matching frictions in the labor market. We show that the model generates counterfactual labor market dynamics. In particular, it fails to generate the negative correlation between vacancies and unemployment in the data, i.e., the Beveridge curve. Introducing real wage rigidity leads to a negative correlation, and increases the magnitude of labor market flows to more realistic values. However, inflation dynamics are only weakly affected by real wage rigidity. The reason is that labor market frictions give rise to long-run employment relationships. The measure of real marginal costs that is relevant for inflation in the Phillips curve contains a present value component that varies independently of the real wage. (c) 2006 Elsevier B.V. All rights reserved.