scholarly journals The Beveridge Curve in the Housing Market

2020 ◽  
pp. 11-14
Author(s):  
Lisi Gaetano
Keyword(s):  
Housing Market ◽  
Recent Criticism ◽  
Search And Matching ◽  
Beveridge Curve ◽  
Matching Model ◽  
Distinctive Features ◽  
Theoretical Paper ◽  
Search And Matching Model

As opposed to a recent criticism (according to which a model à la Pissarides inherently generates a downward sloping Beveridge curve), this short theoretical paper shows that a baseline search-and-matching model is able to take into account the main distinctive features of the housing market, thus generating an upward sloping Beveridge curve.

scholarly journals THE CYCLICAL BEHAVIOR OF UNEMPLOYMENT AND VACANCIES WITH LOSS OF SKILLS DURING UNEMPLOYMENT

2016 ◽  
Vol 21 (6) ◽  
pp. 1277-1304 ◽  
Author(s):  
Victor Ortego-Marti
Keyword(s):  
Human Capital ◽  
Aggregate Productivity ◽  
Search And Matching ◽  
Matching Model ◽  
Cyclical Fluctuations ◽  
Search And Matching Model ◽  
Cyclical Behavior

This paper studies the cyclical fluctuations in unemployment and vacancies in a search and matching model in which workers lose skills during periods of unemployment. Firms' profits fluctuate more because aggregate productivity affects the economy's average human capital. Moreover, wages for workers with lower levels of human capital are closer to the value of nonmarket time, leading to more rigid wages. Fluctuations in the vacancy--unemployment ratio are larger than those in the baseline search and matching model and similar to those we observe in the data.

scholarly journals A NOTE ON THE RELATION BETWEEN SEARCH COSTS AND SEARCH DURATION FOR NEW HIRES

2020 ◽  
pp. 1-14 ◽  
Author(s):  
Francesco Carbonero ◽  
Hermann Gartner
Keyword(s):  
Labor Market ◽  
Instrumental Variable ◽  
Search Costs ◽  
Market Volatility ◽  
Fixed Costs ◽  
Search And Matching ◽  
Matching Model ◽  
Instrumental Variable Estimation ◽  
Search And Matching Model ◽  
New Hires

Fixed search costs, that is, costs that do not vary with search duration, can amplify the cyclical volatility of the labor market. To assess the size of fixed costs, we analyze the relation between search costs and search duration using German establishment data. An instrumental variable estimation shows no relation between search duration and search costs. We conclude that search costs are mainly fixed costs. Furthermore, we show that a search and matching model, calibrated for Germany with fixed costs close to 75%, can generate labor market volatility that is consistent with the data.

scholarly journals Endogenous Separations, Wage Rigidities, and Unemployment Volatility

2022 ◽  
Vol 14 (1) ◽  
pp. 332-354
Author(s):  
Mikael Carlsson ◽  
Andreas Westermark
Keyword(s):  
Wage Rigidity ◽  
Empirical Literature ◽  
Search And Matching ◽  
Matching Model ◽  
Sufficient Statistic ◽  
Search And Matching Model ◽  
Unemployment Volatility ◽  
Newly Hired ◽  
New Hires ◽  
Relevant Degree

We show that in microdata, as well as in a search and matching model with flexible wages for new hires, wage rigidities of incumbent workers have substantial effects on separations and unemployment volatility. Allowing for an empirically relevant degree of wage rigidities for incumbent workers drives unemployment volatility as well as the volatility of vacancies and tightness to that in the data. Thus, the degree of wage rigidity for newly hired workers is not a sufficient statistic for determining the effect of wage rigidities on macroeconomic outcomes. This finding affects the interpretation of a large empirical literature on wage rigidities. (JEL E24, J23, J31, J41, J63)

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