Author: Etienne Lalé
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Author: Elhanan Helpman
Publisher:
ISBN:
Category : Comparative advantage (International trade)
Languages : en
Pages : 0

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Abstract: Recent research has emphasized firm heterogeneity as a source of comparative advantage. Combining this approach with labor market frictions and worker heterogeneity provides a framework for studying the impact of trade on unemployment and inequality. This paper reviews this approach and reports a number of results from recent studies

Author: Elhanan Helpman
Publisher:
ISBN:
Category : Income distribution
Languages : en
Pages : 61

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"In this paper we develop a multi-sector general equilibrium model of firm heterogeneity, worker heterogeneity and labor market frictions. We characterize the distributions of employment, unemployment, wages and income within and between sectors as a function of structural parameters. We find that greater firm heterogeneity increases unemployment, wage inequality and income inequality, whereas greater worker heterogeneity has ambiguous effects. We also find that labor market frictions have non-monotonic effects on aggregate unemployment and inequality through within- and between-sector components. Finally, high-ability workers have the lowest unemployment rates but the greatest wage inequality, and income inequality is lowest for intermediate ability. Although these results are interesting in their own right, the main contribution of the paper is in providing a framework for analyzing these types of issues"--National Bureau of Economic Research web site

Author: Claire H. Hollweg
Publisher: World Bank Publications
ISBN: 1464802637
Category : Business & Economics
Languages : en
Pages : 123

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This report quantifies labor mobility costs in developing countries and simulates the implied adjustment paths of employment and wages following a change in trade policy. High mobility costs are shown to reduce the potential gains to trade reform.

Author: David Wonyoung Jang
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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My dissertation examines how labor market adjustment happens in times of economic downturns or policy changes. Chapter 1 analyzes how the contribution of intensive margin adjustments to the cyclical fluctuations in total hours worked has increased in the US since the 1980s. I document that the job tenure length has increased during this period and labor hours adjustments in recessions are more prominent in economies with higher job tenure lengths. I build a search-and-matching model with part-time workers and job-specific human capital accumulation. With the model, I claim that the improvement in initial match quality can account for the increased use of intensive margin adjustments along the business cycle. A policy simulation shows that subsidizing intensive margin adjustments via Short-time compensation (STC) policy is more effective in reducing unemployment volatility when the initial match productivities are higher and job separations are lower. Chapter 1 explored the impact of job-specific human capital on intensive margin adjustments, while Chapter 2 examines the role of ex-ante worker heterogeneity. Chapter 2 finds that the pool of IPT workers increasingly consists of high-wage workers who are more attached to the labor market during recessions. According to the microdata from the Current Population Survey, this cyclical change is driven by the inflows into the IPT pool, especially the full-time to IPT flow. The demographic compositional changes of the IPT pool in recessions suggest a new channel through which the intensive margin adjustments can affect aggregate unemployment fluctuations by driving up firms' hiring standards during economic downturns. Chapter 3 focuses on a natural experiment in Oregon and Florida that changed the enforceability of non-compete agreements (NCA) between firms and workers. Using the experiment, I find that banning NCA can have a negative consequence on low-wage workers and an unintentional distributional impact. The unemployment duration increases after the ban which exacerbates the loss of general human capital of unemployed workers. I propose the crowding out effect of unemployed workers due to the ban can cause what I observe in the data and the potential cost of banning NCA for workers. Together, these chapters provide insights into different aspects of labor market dynamics, highlighting the importance of initial match quality, worker heterogeneity, and policy implications for labor market institutions

Author: Fabien Postel-Vinay
Publisher:
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 88

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Author: Youngsoo Jang
Publisher:
ISBN:
Category : Home economics
Languages : en
Pages : 124

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My second study investigates the effect of compositional change in the pool of job-seeking workers on aggregate unemployment during recessions. According to the Heterogeneity Hypothesis, this compositional effect is large enough to play an important role in the persistence of aggregate unemployment because labor market frictions are different between observable demographic groups. In order to examine this effect, I build a simple model that is the extension of Krusell et.al (2012) in the sense that the model features search frictions and labor supply decisions along the extensive margin. I conduct three experiments to investigate the compositional effect on aggregate unemployment. Firstly, I assume the cyclical labor market frictions that are the same within a gender but different between genders. This may capture both the cyclicality of labor frictions for each worker and the compositional effect. I regard it as my benchmark. Secondly, I fix labor market frictions over time, but they are still different between groups, which might capture the compositional effect. Lastly, all of the individuals have the same labor market frictions, but they are cyclicality, which is regarded as the examination of the effect of the cyclicality for each worker. For each exercise, I obtain the impulse-response function of aggregate unemployment as well as that of other labor market variables. My result is that the main source of the persistence and cyclicality of aggregate unemployment is the cyclicality of labor market frictions for overall individual workers. Rather, the effect of changes in the pool of unemployed is not large enough to affect aggregate unemployment.

Author: Stanislav Rabinovich
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Jens Rubart
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Author: John R. Kennes
Publisher:
ISBN:
Category :
Languages : en
Pages : 38

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We develop a competing auction model of a labor market with a continuum of heterogeneous workers and firms. We estimate this model and compare it to closely related models of price posting using Danish data on wages and productivities. Assuming heterogeneous workers with no comparative advantage, we find that each model gives a reasonable approximation of the statistical moments of both the wage and productivity distribution. A sensitivity analysis then draws out further implications of the theory. We explain how the feasible matchings between workers and firms changes as the worker moves up the job ladder, how the identification of assortative matching is fundamentally different in directed and undirected search models, how our theory accounts for business cycle facts related to inter-temporal changes in job offer distributions, and how our model could also be used to identify the contributions of specific versus general human capital.