This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

The Labour Market over the Business Cycle: Can Theory Fit the Facts?

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
S Millard
Andrew Scott
M Sensier

Additional information is available for the following registered author(s):

Abstract

We examine the ability of six labour market models to account for the business cycle behaviour of UK labour markets when embedded in a stochastic growth model. WE assess the models in terms of : (i) their ability to mimic general business cycle correlations and volatility (ii) their success at explaining the persistence of labour market fluctuations and (iii) whether the models can explain why the growth and speed of adjustment of labour market variables changes between periods of expansions and contractions. The main success of the models is the ability to broadly account for business cycle correlations and co-movements and the changes in employment/unemployment growth rates between expansions and contractions. However, there are three main failures (a) the models tend to produce insufficiently volatile employment and unemployment fluctuations (b) the models tend to produce too strong a correlation between wages and employment (c) most of the models generate only brief temporary deviations in unemployment in response to shocks rather than the protracted dynamics of the data.

Download Info
To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Publisher Info
Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0364.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: Sep 1997
Date of revision:
Handle: RePEc:cep:cepdps:dp0364

Contact details of provider:
Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords:

Other versions of this item:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
  1. Juan Paez-Farrell, 2005. "New Keynesian Models and the test of Kydland and Prescott," Money Macro and Finance (MMF) Research Group Conference 2005 83, Money Macro and Finance Research Group. [Downloadable!]
  2. Aki Kangasharju & Sari Pekkala, 2001. "Regional Labour Market Adjustment: Are Positive and Negative Shocks Different?," ERSA conference papers ersa01p196, European Regional Science Association. [Downloadable!]
    Other versions:
  3. Karl Taylor & Robert McNabb, 2007. "Business Cycles and the Role of Confidence: Evidence for Europe," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(2), pages 185-208, 04. [Downloadable!] (restricted)
    Other versions:
  4. James S. Costain & Michael Reiter, 2003. "Business Cycles, Unemployment Insurance, and the Calibration of Matching Models," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  5. Thijs van Rens, 2004. "Organizational Capital and Employment Fluctuations," Economics Working Papers 944, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  6. Frédéric Karamé & Lise Patureau & Thepthida Sopraseuth, 2003. "Limited participation and exchange rate dynamics : does theory meet the data ?," Cahiers de la Maison des Sciences Economiques v04013, Université Panthéon-Sorbonne (Paris 1). [Downloadable!]
    Other versions:
  7. McKay, Alisdair & Reis, Ricardo, 2006. "The Brevity and Violence of Contractions and Expansions," CEPR Discussion Papers 5756, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  8. Raquel Fonseca & Lise Patureau, 2008. "Divergence in Labor Market Institutions and International Business Cycles," Working Papers 562, RAND Corporation Publications Department. [Downloadable!]
    Other versions:
  9. Mary Gregory & Adriaan S. Kalwij, 2000. "Overtime Hours in Great Britain Over the Period 1975-1999: A Panel Data Analysis," Economics Series Working Papers 027, University of Oxford, Department of Economics. [Downloadable!]
    Other versions:
  10. Jim Malley & Anton Muscatelli & Ulrich Woitek, 1999. "Real Business Cycles or Sticky Prices? The Impact of Technology Shocks on US Manufacturing," Working Papers 1999_15, Department of Economics, University of Glasgow. [Downloadable!]
    Other versions:
  11. Chadha, J.S. & Nolan, C., 2001. "Supply Shocks and the ‘Natural Rate of Interest': an Exploration," Cambridge Working Papers in Economics 0103, Faculty of Economics, University of Cambridge. [Downloadable!]
  12. Páez-Farrell, Juan, 2006. "Assessing Sticky Price Models Using the Burns and Mitchell Approach," Cardiff Economics Working Papers E2006/17, Cardiff University, Cardiff Business School, Economics Section. [Downloadable!]
    Other versions:
  13. Roger E. A. Farmer & Andrew Hollenhorst, 2006. "Shooting the Auctioneer," NBER Working Papers 12584, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
Statistics
Access and download statistics

Did you know? About 2700 working paper series are listed on RePEc.

This page was last updated on 2009-11-18.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.