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Search, Wage Bargains and Cycles

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Author Info
Pissarides, Christopher A

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Abstract

The author uses an equilibrium model of job matchings with a Nash wage equation to derive the response of wages and unemployment to productivity shock. By endogenizing labor's threat point, he shows that wages absorb fully permanent shocks but only partially temporary shocks. Hence, unemployment responds to perceived temporary shocks but not to permanent shocks. Copyright 1987 by The Review of Economic Studies Limited.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 54 (1987)
Issue (Month): 3 (July)
Pages: 473-83
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Handle: RePEc:bla:restud:v:54:y:1987:i:3:p:473-83

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  1. Jos van Ommeren & Piet Rietveld, 2002. "Commuting, Spatial Search and Labour Market Bargaining," Tinbergen Institute Discussion Papers 02-039/3, Tinbergen Institute. [Downloadable!]
  2. Harold L. Cole & Richard Rogerson, 1996. "Can the Mortonson-Pissarides matching model match the business cycle facts?," Staff Report 224, Federal Reserve Bank of Minneapolis. [Downloadable!]
    Other versions:
  3. Nicola Giammarioli, 2003. "Indeterminacy and search theory," Working Paper Series 271, European Central Bank. [Downloadable!]
  4. Mark Bils & Yongsung Chang & Sun-Bin Kim, 2007. "Comparative Advantage in Cyclical Unemployment," NBER Working Papers 13231, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Dale T. Mortensen, 1988. "The Persistence and Indeterminacy of Unemployment in Search Equilibrium," Discussion Papers 810, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
  6. C.D. Aliprantis & G. Camera, 2004. "A Theoretical Foundation for Bilateral Matching Mechanisms," Econometric Society 2004 North American Summer Meetings 10, Econometric Society. [Downloadable!]
  7. Régis Barnichon, 2007. "Productivity, Aggregate Demand and Unemployment Fluctuations," CEP Discussion Papers dp0819, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  8. Thomas B. King & James Morley, 2005. "In search of the natural rate of unemployment," Supervisory Policy Analysis Working Papers 2005-05, Federal Reserve Bank of St. Louis. [Downloadable!]
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This page was last updated on 2009-11-22.


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