Labor market institutions and aggregate fluctuations in a search and matching model

Zanetti, Francesco

doi:10.1016/j.euroecorev.2010.10.001

Cited by 85 publications

(71 citation statements)

References 31 publications

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“…In the model of Zanetti (2011) which reproduces the structural characteristics of the UK economy, the threshold productivity is much higher due to lower vacancy posting and ring costs.…”

Section: Steady State Analysismentioning

confidence: 99%

“…As in Zanetti (2011), the equilibrium average real wage is a weighted average of continuing workers with weight ω…”

Section: Phtyht−pttctt Ptmentioning

confidence: 99%

“…This adds to an already growing literature analyzing the impact of labor markets reforms on macroeconomic stability. In a closed economy model, Zanetti (2011) shows the impact of decreasing replacement rates and ring costs on the stability of the economy and Krause and Uhlig (2012) discuss the eect of labor market reforms in the presence of shocks to the discount factor. Mussa (2005) argues that structural reforms aect the adjustment capacity of the currency union as a whole.…”

Section: Introductionmentioning

confidence: 99%

“…Naturally, our model is not the rst one addressing labor market frictions in a DSGE framework. Zanetti (2011) andWalsh (2005) use a similar approach to include labor markets while Krause and Uhlig (2012) analyze the German reduction of the replacement rate by using a model with dierent skill groups to focus on the impact of labor market reforms on high versus low skilled workers. Krause and Lubik (2007), instead, introduce real wage rigidities into a New Keynesian modeling framework distinguishing between sectors with high and low productivity.…”

Section: Introductionmentioning

confidence: 99%

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Labor Market Reforms and Current Account Imbalances - Beggar-Thy-Neighbor Policies in a Currency Union?

Baas

Belke

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily refl ect those of the editors. Terms of use: Documents in Ruhr Economic Papers #505

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“…In the model of Zanetti (2011) which reproduces the structural characteristics of the UK economy, the threshold productivity is much higher due to lower vacancy posting and ring costs.…”

Section: Steady State Analysismentioning

confidence: 99%

“…As in Zanetti (2011), the equilibrium average real wage is a weighted average of continuing workers with weight ω…”

Section: Phtyht−pttctt Ptmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Labor Market Reforms and Current Account Imbalances - Beggar-Thy-Neighbor Policies in a Currency Union?

Baas

Belke

2014

SSRN Journal

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“…According to Zanetti (2007), They set this parameter to 0.068 using a slightly different calibration strategy. We consider this exogenous probability as an upper bound because most of the quits are in fact job-related quits, which can hardly be classified as exogenous (see Nagypal, 2004, for details).…”

mentioning

confidence: 99%

Investment-Specific Shocks and Cyclical Fluctuations in a Frictional Labor Market

Toledo

Silva

2010

The B.E. Journal of Macroeconomics

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This paper studies the role of investment-specific shocks as an amplification mechanism in the labor market fluctuations. We first show evidence that suggests that when technological advances make equipment more expensive, not only investment and output decrease but also firms post fewer vacancies, hours worked are reduced and unemployment increases. Moreover, we study the quantitative impact of this type of shocks on the labor market by incorporating them into a Real Business Cycle model with search and matching frictions. We find that in our model these shocks have direct amplification effect on labor market fluctuations, increasing the volatility of the labor market variables between two and five times.

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Reforming the labor market and improving competitiveness: an analysis for Spain using FiMod

Schwarzmüller

Stähler

2013

SERIEs

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This paper uses an extended version of "FiMod-A DSGE Model for Fiscal Policy Simulations" (Stähler and Thomas Econ Model 29:239-261, 2012) with endogenous job destruction decisions by private firms to analyze the effects of several currently discussed labor market reforms on the Spanish economy. The main focus is on the firms' hiring and firing decisions, on the implications for fiscal balances and on Spain's international competitiveness. We find that measures aiming at reducing (policy-induced) outside option of workers, such as a decrease in unemployment benefits, public wages or, to a lesser extent, public-sector employment, seem most beneficial to foster output, employment, international competitiveness and fiscal balances. Decreasing the unions' bargaining power also accomplishes this task. Our simulation suggests that reforming employment protection legislation does not seem to be a suitable tool from the perspective of improving international competitiveness. All measures imply (income) redistribution between optimizing and liquidity-constrained consumers. Our analysis also suggests that those reforms that are beneficial for Spain generate positive spillovers to the rest of EMU, too.

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Labor market institutions and aggregate fluctuations in a search and matching model

Cited by 85 publications

References 31 publications

Labor Market Reforms and Current Account Imbalances - Beggar-Thy-Neighbor Policies in a Currency Union?

Labor Market Reforms and Current Account Imbalances - Beggar-Thy-Neighbor Policies in a Currency Union?

Investment-Specific Shocks and Cyclical Fluctuations in a Frictional Labor Market

Reforming the labor market and improving competitiveness: an analysis for Spain using FiMod

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