Complementarity of labor market institutions, equilibrium unemployment and the persistence of business cycles
AbstractThis paper evaluates complementarities of labor market institutions and the business cycle in the context of a stochastic dynamic general equililbriurn model econorny. Matching between workers and vacancies with endogenous search intensity, Nash-bargained wages, payroll taxation, and differential support for unemployed labor in search and leisure are central aspects of the model. For plausible regions of the policy and institutional parameter space, the model exhibits more persistence than standard RBC models and often indeterminacy of rational expectations paths without increasing returns in production. Furtherrnore~ labor rnarket institutions act in a complementary fashion in generating these effects. --
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Bibliographic InfoPaper provided by Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes in its series SFB 373 Discussion Papers with number 1999,49.
Date of creation: 1999
Date of revision:
Other versions of this item:
- Burda, Michael C & Weder, Mark, 2000. "Complementarity of Labour Market Institutions, Equilibrium Unemployment and the Persistence of Business Cycles," CEPR Discussion Papers 2592, C.E.P.R. Discussion Papers.
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
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- Burda, Michael C & Weder, Mark, 2010.
"Payroll Taxes, Social Insurance and Business Cycles,"
CEPR Discussion Papers
7984, C.E.P.R. Discussion Papers.
- Mark Weder & Michael Burda, 2010. "Payroll Taxes, Social Insurance and Business Cycles," 2010 Meeting Papers 781, Society for Economic Dynamics.
- Burda, Michael C. & Weder, Mark, 2010. "Payroll Taxes, Social Insurance and Business Cycles," IZA Discussion Papers 5150, Institute for the Study of Labor (IZA).
- Michael C. Burda & Mark Weder, 2010. "Payroll Taxes, Social Insurance and Business Cycles," School of Economics Working Papers 2010-17, University of Adelaide, School of Economics.
- Michael C. Burda & Mark Weder, 2010. "Payroll Taxes, Social Insurance and Business Cycles," SFB 649 Discussion Papers SFB649DP2010-042, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
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