Volatile hiring: uncertainty in search and matching models
| Autor: | Lukas Freund, Pontus Rendahl, Wouter J. Den Haan |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
HB Economic Theory
Economics and Econometrics Matching (statistics) Bargaining problem media_common.quotation_subject Uncertainty Contrast (statistics) Option value Article Search frictions HD Industries. Land use. Labor Unemployment Economics Econometrics medicine Volatility (finance) Free entry medicine.symptom Productivity Finance media_common |
| Zdroj: | Journal of Monetary Economics |
| Popis: | In search-and-matching models, the nonlinear nature of search frictions increases average unemployment rates during periods with higher volatility. These frictions are not, however, by themselves sufficient to raise unemployment following an increase in perceived uncertainty; though they may do so in conjunction with the common assumption of wages being determined by Nash bargaining. Importantly, option-value considerations play no role in the standard model with free entry. In contrast, when the mass of entrepreneurs is finite and there is heterogeneity in firm-specific productivity, a rise in perceived uncertainty robustly increases the option value of waiting and reduces job creation. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|