Abstract
| Original language | English |
|---|---|
| Place of Publication | Amsterdam |
| Publisher | Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam |
| Publication status | Published - 1995 |
Publication series
| Name | Research Memorandum |
|---|---|
| No. | 1995-39 |
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Structural change and wage formation in an empirical flow model for the labour market. / Gautier, P.A.; den Butter, F.A.G.
Amsterdam : Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam, 1995. (Research Memorandum; No. 1995-39).Research output: Working paper › Professional
TY - UNPB
T1 - Structural change and wage formation in an empirical flow model for the labour market
AU - Gautier, P.A.
AU - den Butter, F.A.G.
PY - 1995
Y1 - 1995
N2 - This paper analyzes the impact of supply shocks, demand shocks and policy shocks on labour market dynamics, using a consistent macroeconomic flow model of the Dutch labour market. The long run properties of the model mimic those of the theoretical equilibrium search models, with endogenous vacancy supply, wage formation and matching of unemployed and vacancies. The model also describes the propagation of shocks through different duration classes of unemployment and allows for duration dependent exit probabilities from unemployment. Simulation experiments and a sensitivity analysis show that a shock may bring the labour market out of its long run dynamic equilibrium for a considerable period and that the length of that period depends much on the initial pace of structural change.
AB - This paper analyzes the impact of supply shocks, demand shocks and policy shocks on labour market dynamics, using a consistent macroeconomic flow model of the Dutch labour market. The long run properties of the model mimic those of the theoretical equilibrium search models, with endogenous vacancy supply, wage formation and matching of unemployed and vacancies. The model also describes the propagation of shocks through different duration classes of unemployment and allows for duration dependent exit probabilities from unemployment. Simulation experiments and a sensitivity analysis show that a shock may bring the labour market out of its long run dynamic equilibrium for a considerable period and that the length of that period depends much on the initial pace of structural change.
M3 - Working paper
T3 - Research Memorandum
BT - Structural change and wage formation in an empirical flow model for the labour market
PB - Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam
CY - Amsterdam
ER -