Advanced Search
MyIDEAS: Login

Labor Market Performance and Heterogeneity

Contents:

Author Info

Abstract

Labor market performance varies greatly across countries while, within countries, individuals have very different labor market experiences. The purpose of this dissertation is to document these features and propose a modelling framework that can help us understand the observations. In Chapter one, labor market indicators of performance and of institutions for OECD countries are described. They lead to the view that labor market stylized facts are richer and more complex than usually argued. In particular, cross-country differences in labor market performance change when different age groups, different gender groups, different educational groups, and different measures of performance are examined. Furthermore, cross-country differences in institutions greatly vary across countries, and not always in the same direction as our preconceptions suggest. Agent heterogeneity and market frictions are necessary to account for these facts. Chapter two introduces a two-sided search model with ex-ante heterogeneity that generates within-skill wage differences and skill-related unemployment The result is a rich description of equilibrium where labor policies have implications that go beyond their effects on the level of current unemployment and aggregate output. In this model, policies, institutions and individual characteristics may result in more or less unemployment as well as in better or worse sorting of skills. Consequently, the size of the pie - the level of aggregate output - but also the way it is distributed - the degree of wage inequality - are affected in non trivial and interesting ways. Finally, it is shown in Chapter three that the model introduced in Chapter two, augmented with three features, can qualitatively explain differences in GDP per hour and GDP per capita, differences in employment, and differences in the proportion of part-time work between the US, France and the Netherlands. The three elements grafted to the model are labor/leisure choices, with the assumption that firms and workers bargain over both wages and hours, frictions in the bargaining process - firms and workers that are engaged in a match cannot always renegotiate - and cross-country differences in labor income taxation.

Download Info

If 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.
File URL: https://urresearch.rochester.edu/fileDownloadForInstitutionalItem.action?itemId=188&itemFileId=271
File Function: full text
Download Restriction: None

Bibliographic Info

Paper provided by Economie d'Avant Garde in its series Economie d'Avant Garde Dissertations with number 1.

as in new window
Length: 171 pages
Date of creation: Jun 2004
Date of revision:
Handle: RePEc:eag:disser:1

Contact details of provider:
Web page: http://www.jeremygreenwood.net/EAG.htm

Related research

Keywords: search and matching; labor market performance; heterogeneity; frictions;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eag:disser:1. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jeremy Greenwood).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.