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Sclerosis and large volatilities: Two sides of the same coin

Author

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  • Gartner, Hermann
  • Merkl, Christian
  • Rothe, Thomas

Abstract

The labor market in Germany is more sclerotic and volatile than in the US. We show theoretically that sclerosis and large volatilities are two sides of the same coin. Both may be driven by large hiring costs and low quit rates.

Suggested Citation

  • Gartner, Hermann & Merkl, Christian & Rothe, Thomas, 2012. "Sclerosis and large volatilities: Two sides of the same coin," Economics Letters, Elsevier, vol. 117(1), pages 106-109.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:106-109
    DOI: 10.1016/j.econlet.2012.04.100
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    Keywords

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    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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