Nonlinear Dynamics in a Structural Model of Employment
AbstractSearch and matching models imply that firms' employment adjustment costs depend on the tightness of the labor market, giving rise to endogenous or nonlinear dynamics in employment. This paper sets this argument out in detail, estimating a model simultaneously explaining the long-run level of employment and the nonlinear dynamics. The main implications of the estimated model are (1) the effect of a given shock to the long-run level of employment is markedly different at different levels of employment, and (2) asymmetric business cycles result with the downswing in employment being sharper and deeper than the upswing Copyright 1992 by John Wiley & Sons, Ltd.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.
Volume (Year): 7 (1992)
Issue (Month): S (Suppl. Dec.)
Contact details of provider:
Web page: http://www.interscience.wiley.com/jpages/0883-7252/
Other versions of this item:
- Simon Burgess, 1991. "Nonlinear Dynamics in a Structural Model of Employment," CEP Discussion Papers dp0037, Centre for Economic Performance, LSE.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Hansen,B.E., 1999.
"Testing for linearity,"
7, Wisconsin Madison - Social Systems.
- Akram,Q.F. & Nymoen,R., 2001. "Employment behaviour in slack and tight labour markets," Memorandum 27/2001, Oslo University, Department of Economics.
- Collard, Fabrice & Fève, Patrick & Langot, François & Perraudin, Corinne, 1999.
"A structural model for US aggregate job flows,"
CEPREMAP Working Papers (Couverture Orange)
- Skalin, Joakim & Ter svirta, Timo, 2002.
"Modeling Asymmetries And Moving Equilibria In Unemployment Rates,"
Cambridge University Press, vol. 6(02), pages 202-241, April.
- Skalin, Joakim & Teräsvirta, Timo, 1998. "Modelling asymmetries and moving equilibria in unemployment rates," Working Paper Series in Economics and Finance 262, Stockholm School of Economics, revised 05 Oct 1998.
- Hamermesh, Daniel S & Pfann, Gerard A, 1996.
"Turnover and the Dynamics of Labour Demand,"
London School of Economics and Political Science, vol. 63(251), pages 359-67, August.
- Ingvild Svendsen, 1998. "Rational Expectations in Price Setting. Tests Based on Norwegian Export Prices," Discussion Papers 226, Research Department of Statistics Norway.
- Q. Farooq Akram & Øyvind Eitrheim & Lucio Sarno, 2005. "Non-linear dynamics in output, real exchange rates and real money balances: Norway, 1830-2003," Working Paper 2005/2, Norges Bank.
If references are entirely missing, you can add them using this form.