Understanding Labour Market Frictions: A Tobinâ€™s Q Approach
AbstractLabour market friction is viewed as the Tobinâ€™s Q of an employed worker as opposed to the position of the Beveridge curve. This Tobinâ€™s Q is inversely proportional to the average quality of the match between employers and workers. Based on this measure, I find that the labour market friction has a procyclical trend in the US, which is indicative of the fact that firms compromise on the quality of the skill match during an expansion.
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Bibliographic InfoPaper provided by Money Macro and Finance Research Group in its series Money Macro and Finance (MMF) Research Group Conference 2006 with number 35.
Date of creation: 02 Feb 2007
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Intangible Capital; Skill matching; Human capital;
Find related papers by JEL classification:
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
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