Participation, unemployment and wage bargaining in a real business cycle model
AbstractThe objective of this article is to evaluate quantitative implications of the hypothesis of matching, with endogenous participation, in the framework of a real cycle model. The choice of participation results from a trade off between domestic production and search for a job. Thus, fluctuations of the unemployment summarise the flows in and out of the labour force. Moreover, in this model, unemployment fluctuations are not Pareto optimal as in Andolfatto  and Merz . Results of the simulations show how it is possible to explain some stylised facts of the American labour market when flows on this market are so clarified.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 1996034.
Date of creation: 01 Sep 1996
Date of revision:
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
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- Fonseca, Raquel & Muñoz, Rafael, 1999.
"Can the Matching Model Account for Spanish Unemployment ?,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), UniversitÃ© catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)
1999012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Raquel Fonseca & Rafael Muñoz, 2003. "Can the matching model account for Spanish unemployment?," Investigaciones Economicas, Fundación SEPI, Fundación SEPI, vol. 27(2), pages 277-308, May.
- Fonseca, Raquel & Munoz, Rafael, 2002. "Can the matching model account for Spanish unemployment?," CEPREMAP Working Papers (Couverture Orange) 0203, CEPREMAP.
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