Three Essays on Frictional Labor Markets PDF Download

Author: Georg Duernecker
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Category : Labor economics
Languages : en
Pages : 152

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Author: Sumon Majumdar
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Category : Labor market
Languages : en
Pages : 348

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Author: Kenjiro Hori
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Languages : en
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Author: David Pothier
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Category : Labor economics
Languages : en
Pages : 116

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This thesis contributes to the understanding of how socio-economic factors affect the functioning of modern labour markets. It belongs to the strand of academic literature that departs from the standard Walrasian model of the labour market, and considers matching and information frictions to be important determinants of observed labour market phenomena. Within this general framework, this thesis analyses how different forms of agent heterogeneity / socio-demographic identity, productivity, and wealth - affect wage rates and the level of employment in competitive labour markets. The first chapter studies how occupational segregation - the sorting of workers across occupations based on their demographic characteristics - affects the allocation of talent in the labour market. When job vacancy information is transmitted via workers' group-biased social contacts, occupational segregation is found to be a robust equilibrium outcome. The chapter shows that while occupational segregation implies benefits in terms of the job-finding probability of individual workers, it may also engender significant allocative inefficiencies when workers differ in terms of their productivity across occupations. The second chapter examines how heterogeneous workers and firms sort across formal (market-based) and informal (network-based) recruitment channels. When worker and firm productivity are unobservable the two recruitment channels effectively compete in terms of their screening capability. Matching frictions are shown to generate a sorting externality that leads to a multiplicity of equilibrium outcomes, depending on the skill-bias within social networks and the productivity dispersion among workers and firms. The third chapter, co-authored with Damien Puy, examines to what extent variations in wages and employment over the business-cycle can explain the counter-cyclical properties of the income distribution. We show that demand composition effects are an important channel through which aggregate supply shocks are propagated through the economy, and that these have important distributional consequences. In particular, we find income inequality (as measured by the Gini coefficient) to be counter-cyclical. Consistent with empirical evidence, this is shown to be largely due to changes in the level of employment and to a lesser degree to variations in relative factor prices.

Author:
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Category : Labor contract
Languages : en
Pages : 240

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Author: Timo Leidecker
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Category : Economic development
Languages : en
Pages : 464

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Author: Markus Riegler
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Languages : en
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Author: Jong-Seok Oh
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Languages : en
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This dissertation examines the macroeconomic impact of reduced labor market friction on the U.S. business cycle after the mid-1980s. The first two essays investigate the relationship between labor market flexibility and macroeconomic stability from a post-Keynesian perspective. In the third essay which reviews the relationship between labor market flexibility and patterns of U.S. business cycle, I test the argument that after 1985 Okun's coefficient became larger due to the flexible labor market. In essay 1, considering two aspects of labor market flexibility, employment flexibility and real wage flexibility, I adopt the flex-output model (Skott, 2015) to first discuss employment flexibility and then extend it by incorporating real wage dynamics induced from a wage-price Phillips curve (Flaschel and Krolzig, 2006) to address real wage flexibility. The simulation of model explains that employment flexibility increases instability of an economy whereas real wage flexibility reduces it. Empirical results of this paper suggest that during the Great Moderation, real wage flexibility played a major role in stabilizing the U.S. economy. On the other hand, employment flexibility has contributed to destabilizing the economy during the Great Recession. In essay 2, using structural VAR analysis, I provide more rigorous empirical evidence to support the hypothesis in essay 1 - real wage flexibility played a major role in stabilizing U.S. economy during the Great Moderation, and employment flexibility has contributed to destabilizing the economy during the Great Recession. I found that during the Great Moderation (1) Employment and real wage flexibilities were operating simultaneously; (2) The employment flexibility was not so severe; (3) Flexible real wages functioned as an autonomic stabilizer; (4) Therefore, stabilized goods market during the Great Moderation can be explained by dominating effect of the real wage flexibility over the employment flexibility. For the Great Recession, however, severe asymmetry in the business cycle and the lack of observations obstructs reliable empirical work. In essay 3, I discuss the observations of increased cyclicality in aggregate hours and increased responsiveness of the (un)employment rate to output changes after 1985, which have contributed to recent debate about the validity of Okun's law. To investigate this, I measure Okun's coefficients in three phases of the business cycle - recessions, early expansions and late expansions. Related findings include: (1) The main determining factor for an increased coefficient for aggregate hours is the increased responsiveness of the employment rate during late expansions. (2) The increased responsiveness of hours per employee in early expansion is another main determining factor for more reactive aggregate hours. These findings conflict with the flexible labor market hypothesis that focuses mainly on firms' firing behaviors during recessions when they incur less costs than previously.

Author: Rayhaneh Esmaeilzadeh
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Languages : en
Pages : 0

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This dissertation contains three essays in labour market mobility. These essays employ a dynamic multinomial logit model with discrete factor approximation for the specification of unobserved individual heterogeneity and Wooldridge's approach for controlling the endogeneity problem of initial conditions. The dynamic structural of the model is assumed to follow a first order Markov process. The data is taken from longitudinal levels of Statistics Canada's Survey of Labour and Income Dynamics (SLID) and is restricted to males aged 25 to 55 between 1993 and 2004. I examine and discuss the importance of structural and spurious state dependence in three different aspects of labour market mobility. Relevant policy implications are discussed. The first essay compares immigrants and natives in self-employment transitions among four mutually exclusive and exhaustive states of paid-employment, self-employment, unemployment, and being out of the labour force. The second essay explores the factors explaining immigrant-native differences in stability, downward, and upward wage mobility rates. The final essay provides a comprehensive research on earnings dynamics of immigrants and natives within and between Canada and Denmark. This essay also employs Danish administrative registered dataset for the period 1994-2003. Empirical results show that state dependence exists in all states of labour market mobility with different degrees for immigrants and natives. Not all observed persistence is structural, some portion is due to the unobservable factors.

Author: Clara Barrabes Solanes
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Category : Labor economics
Languages : en
Pages : 93

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