Search Frictions and the Labor Wedge

Search Frictions and the Labor Wedge
Author: Mr.Andrea Pescatori
Publisher: International Monetary Fund
Total Pages: 31
Release: 2011-05-01
Genre: Business & Economics
ISBN: 1455262404

This paper shows that labor market search frictions do not explain fluctuations in the labor wedge per se. However, the introduction of extensive and intensive margin clarifies that measuring the MRS in terms of total hours artificially introduces procyclicality in the MRS. When the MRS is correctly measured in terms of hours per worker, the labor wedge obtained is less variable than the one of the competitive model. Finally, we show that it is possible to measure a strongly procyclical labor wedge when the actual data generating process is a search model that allows for movements in both margins.

Labor, Credit, and Goods Markets

Labor, Credit, and Goods Markets
Author: Nicolas Petrosky-Nadeau
Publisher: MIT Press
Total Pages: 271
Release: 2017-11-10
Genre: Business & Economics
ISBN: 0262036452

An integrated framework to study the theoretical and quantitative properties of economies with frictions in labor, financial, and goods markets. This book offers an integrated framework to study the theoretical and quantitative properties of economies with frictions in multiple markets. Building on analyses of markets with frictions by 2010 Nobel laureates Peter A. Diamond, Dale T. Mortensen, and Christopher A. Pissarides, which provided a new theoretical approach to search markets, the book applies this new paradigm to labor, finance, and goods markets. It shows, in particular, how frictions in different markets interact with each other. The book first covers the main developments in the analysis of the labor market in the presence of frictions, offering a systematic analysis of the dynamics of this environment and explaining the notion of macroeconomic volatility. Then, building on the generality and simplicity of the search analysis, the book adapts it to other markets, developing the tools and concepts to analyze friction in these markets. The book goes beyond the traditional general equilibrium analysis of markets, which is often frictionless. It begins with the standard analysis of a single market, and then sequentially integrates more markets into the analysis, progressing from labor to financial to goods markets. Along the way, the book provides a number of useful results and insights, including the existence of a direct link between search frictions and the degree of volatility in the economy.

Structural Models of Wage and Employment Dynamics

Structural Models of Wage and Employment Dynamics
Author: Henning Bunzel
Publisher: Emerald Group Publishing
Total Pages: 613
Release: 2006-03-30
Genre: Business & Economics
ISBN: 0444520899

Selected papers from a conference held in honour of Professor Dale T. Mortensen upon the occasion of his 65th birthday. It includes papers on some of Professor Dale T. Mortensen's current research topics, as well as additional theoretical papers, and micro- and macro-econometric papers.

Labor Markets and Business Cycles

Labor Markets and Business Cycles
Author: Robert Shimer
Publisher: Princeton University Press
Total Pages: 189
Release: 2010-04-12
Genre: Business & Economics
ISBN: 1400835232

Labor Markets and Business Cycles integrates search and matching theory with the neoclassical growth model to better understand labor market outcomes. Robert Shimer shows analytically and quantitatively that rigid wages are important for explaining the volatile behavior of the unemployment rate in business cycles. The book focuses on the labor wedge that arises when the marginal rate of substitution between consumption and leisure does not equal the marginal product of labor. According to competitive models of the labor market, the labor wedge should be constant and equal to the labor income tax rate. But in U.S. data, the wedge is strongly countercyclical, making it seem as if recessions are periods when workers are dissuaded from working and firms are dissuaded from hiring because of an increase in the labor income tax rate. When job searches are time consuming and wages are flexible, search frictions--the cost of a job search--act like labor adjustment costs, further exacerbating inconsistencies between the competitive model and data. The book shows that wage rigidities can reconcile the search model with the data, providing a quantitatively more accurate depiction of labor markets, consumption, and investment dynamics. Developing detailed search and matching models, Labor Markets and Business Cycles will be the main reference for those interested in the intersection of labor market dynamics and business cycle research.

Unexplored Dimensions of Discrimination

Unexplored Dimensions of Discrimination
Author: Tito Boeri
Publisher: Oxford University Press, USA
Total Pages: 289
Release: 2015
Genre: Business & Economics
ISBN: 0198729855

A volume on discrimination in the labour market. Part One addresses career paths, schooling choice, and the gender wage gap. Part Two addresses unexplored dimensions of discrimination with particular attention to physical appearance, obesity, religion, and sexual orientation.

Online and Matching-Based Market Design

Online and Matching-Based Market Design
Author: Federico Echenique
Publisher: Cambridge University Press
Total Pages: 721
Release: 2023-05-31
Genre: Business & Economics
ISBN: 1108831990

Written by more than fifty top researchers, this text comprehensively covers a major inter-disciplinary field and its important applications.

Handbook of Labor Economics

Handbook of Labor Economics
Author: Orley Ashenfelter
Publisher: Elsevier
Total Pages: 863
Release: 2010-12-09
Genre: Business & Economics
ISBN: 0444534504

A guide to the continually evolving field of labour economics.

The Oxford Handbook of the Economics of Networks

The Oxford Handbook of the Economics of Networks
Author: Yann Bramoullé
Publisher: Oxford University Press
Total Pages: 857
Release: 2016-03-01
Genre: Business & Economics
ISBN: 0190216832

The Oxford Handbook of the Economics of Networks represents the frontier of research into how and why networks they form, how they influence behavior, how they help govern outcomes in an interactive world, and how they shape collective decision making, opinion formation, and diffusion dynamics. From a methodological perspective, the contributors to this volume devote attention to theory, field experiments, laboratory experiments, and econometrics. Theoretical work in network formation, games played on networks, repeated games, and the interaction between linking and behavior is synthesized. A number of chapters are devoted to studying social process mediated by networks. Topics here include opinion formation, diffusion of information and disease, and learning. There are also chapters devoted to financial contagion and systemic risk, motivated in part by the recent financial crises. Another section discusses communities, with applications including social trust, favor exchange, and social collateral; the importance of communities for migration patterns; and the role that networks and communities play in the labor market. A prominent role of networks, from an economic perspective, is that they mediate trade. Several chapters cover bilateral trade in networks, strategic intermediation, and the role of networks in international trade. Contributions discuss as well the role of networks for organizations. On the one hand, one chapter discusses the role of networks for the performance of organizations, while two other chapters discuss managing networks of consumers and pricing in the presence of network-based spillovers. Finally, the authors discuss the internet as a network with attention to the issue of net neutrality.

The Future of Healthcare Reform in the United States

The Future of Healthcare Reform in the United States
Author: Anup Malani
Publisher: University of Chicago Press
Total Pages: 365
Release: 2015-10-15
Genre: Law
ISBN: 022625500X

In the years since the passage of the Patient Protection and Affordable Care Act (PPACA, or, colloquially, Obamacare), most of the discussion about it has been political. But as the politics fade and the law's many complex provisions take effect, a much more interesting question begins to emerge: How will the law affect the American health care regime in the coming years and decades? This book brings together fourteen leading scholars from the fields of law, economics, medicine, and public health to answer that question. Taking discipline-specific views, they offer their analyses and predictions for the future of health care reform. By turns thought-provoking, counterintuitive, and even contradictory, the essays together cover the landscape of positions on the PPACA's prospects. Some see efficiency growth and moderating prices; others fear a strangling bureaucracy and spiraling costs. The result is a deeply informed, richly substantive discussion that will trouble settled positions and lay the groundwork for analysis and assessment as the law's effects begin to become clear.