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The implications of labor market network for business cycles

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  • Arbex, Marcelo
  • Caetano, Sidney
  • O’Dea, Dennis

Abstract

We embed a frictional labor market with formal and informal search in an RBC model. Even in a model with exogenous search effort the interaction between formal and informal (network) search methods can help in generating more volatility in unemployment.

Suggested Citation

  • Arbex, Marcelo & Caetano, Sidney & O’Dea, Dennis, 2016. "The implications of labor market network for business cycles," Economics Letters, Elsevier, vol. 144(C), pages 37-40.
    • Handle: RePEc:eee:ecolet:v:144:y:2016:i:c:p:37-40
    DOI: 10.1016/j.econlet.2016.04.028
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    Cited by:

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    2. Moreno Galbis, Eva & Wolff, Francois-Charles & Herault, Arnaud, 2020. "How helpful are social networks in finding a job along the economic cycle? Evidence from immigrants in France," Economic Modelling, Elsevier, vol. 91(C), pages 12-32.
    3. André, Keven R.A. & Arbex, Marcelo & Corrêa, Márcio V., 2023. "The economic implications of a network SIR-Macro model of epidemics," Economics Letters, Elsevier, vol. 225(C).

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    More about this item

    Keywords

    Business cycles; Labor markets; Social networks; Job search;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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