Differential Responses of Labor Supply across Productivity Groups
There is a substantial amount of microeconomic evidence documenting diferential responses oflabor supply across productivity groups. In partic-ular, more productive individuals: (i) enjoy ahigher employment rate, (ii) have a lower volatility of employment and (iii) spend less time workingat home. This paper constructs a real business cycle model with permanent heterogeneity inindividual productivity. We calibrate the model with five productivity groups to match keyaggregate features of the U.S. economy. We find that the model delivers most of the properties ofthe data.
(This abstract was borrowed from another version of this item.)
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eisner, Robert, 1988. "Extended Accounts for National Income and Product," Journal of Economic Literature, American Economic Association, vol. 26(4), pages 1611-84, December.
- Cho, Jang-Ok, 1995. "Ex post heterogeneity and the business cycle," Journal of Economic Dynamics and Control, Elsevier, vol. 19(3), pages 533-551, April.
- Manuel Arellano & Costas Meghir, 1992.
"Female Labour Supply and On-the-Job Search: An Empirical Model Estimated Using Complementary Data Sets,"
Review of Economic Studies,
Oxford University Press, vol. 59(3), pages 537-559.
- M Arellano & Costas Megir & Mary Silles, 1990. "Female Labour Supply and On-the-Job Search: An Empirical Model Estimated using Complementary Data Sets," CEP Discussion Papers dp0009, Centre for Economic Performance, LSE.
- Jess Benhabib & Richard Rogerson & Randall Wright, 1991.
"Homework in macroeconomics: household production and aggregate fluctuations,"
135, Federal Reserve Bank of Minneapolis.
- Benhabib, Jess & Rogerson, Richard & Wright, Randall, 1991. "Homework in Macroeconomics: Household Production and Aggregate Fluctuations," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1166-87, December.
- Burgess, Paul L & Low, Stuart A, 1992. "Preunemployment Job Search and Advance Job Loss Notice," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 258-87, July.
- Gary Hansen, 2010.
"Indivisible Labor and the Business Cycle,"
Levine's Working Paper Archive
233, David K. Levine.
- Ana Castaneda & Javier Diaz-Gimenez & Jose-Victor Rios-Rull, 1995.
"Unemployment spells and income distribution dynamics,"
95-9, Federal Reserve Bank of Philadelphia.
- Ríos Rull, José Víctor & Díaz-Giménez, Javier & Castañeda, Ana, 1995. "Unemployment spells and income distribution dynamics," UC3M Working papers. Economics 3902, Universidad Carlos III de Madrid. Departamento de Economía.
- den Haan, Wouter J & Marcet, Albert, 1990.
"Solving the Stochastic Growth Model by Parameterizing Expectations,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 8(1), pages 31-34, January.
- Wouter Denhaan & Albert Marcet, 1990. "FORTRAN code for Simulation Parameterized Expecations Algorithm," QM&RBC Codes 57, Quantitative Macroeconomics & Real Business Cycles.
- Jean-Pierre DANTHINE & John B. DONALDSON, 1993.
"Computing Equilibria of Non-Optimal Economies,"
Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP)
9306, Université de Lausanne, Faculté des HEC, DEEP.
- Eswar Prasad, 1996. "Skill Heterogeneity and the Business Cycle," Canadian Journal of Economics, Canadian Economics Association, vol. 29(4), pages 910-29, November.
- Teresa Garcia-Milà & Albert Marcet & Eva Ventura, 2010.
"Supply Side Interventions and Redistribution,"
Royal Economic Society, vol. 120(543), pages 105-130, 03.
- Christiano, Lawrence J & Eichenbaum, Martin, 1992.
"Current Real-Business-Cycle Theories and Aggregate Labor-Market Fluctuations,"
American Economic Review,
American Economic Association, vol. 82(3), pages 430-50, June.
- Lawrence J. Christiano & Martin Eichenbaum, 1990. "Current real business cycle theories and aggregate labor market fluctuations," Discussion Paper / Institute for Empirical Macroeconomics 24, Federal Reserve Bank of Minneapolis.
- Lawrence J. Christiano & Martin Eichenbaum, 1990. "Current real business cycle theories and aggregate labor market fluctuations," Working Paper Series, Macroeconomic Issues 90, Federal Reserve Bank of Chicago.
- Kydland, Finn E., 1984. "Labor-force heterogeneity and the business cycle," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 21(1), pages 173-208, January.
- Merz, Monika, 1995. "Search in the labor market and the real business cycle," Journal of Monetary Economics, Elsevier, vol. 36(2), pages 269-300, November.
- Martin S. Eichenbaum & Lars Peter Hansen, 1987.
"Estimating Models with Intertemporal Substitution Using Aggregate Time Series Data,"
NBER Working Papers
2181, National Bureau of Economic Research, Inc.
- Eichenbaum, Martin & Hansen, Lars Peter, 1990. "Estimating Models with Intertemporal Substitution Using Aggregate Time Series Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(1), pages 53-69, January.
- John M. Barron & Wesley Mellow, 1979. "Search Effort in the Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 389-404.
- Barron, John M & Gilley, Otis W, 1981. "Job Search and Vacancy Contacts: Note," American Economic Review, American Economic Association, vol. 71(4), pages 747-52, September.
- Richard Rogerson, 2010.
"Indivisible Labor, Lotteries and Equilibrium,"
Levine's Working Paper Archive
250, David K. Levine.
- Rios-Rull, Jose-Victor, 1993. "Working in the Market, Working at Home, and the Acquisition of Skills: A General-Equilibrium Approach," American Economic Review, American Economic Association, vol. 83(4), pages 893-907, September.
- Ed Nosal & Richard Rogerson & Randall Wright, 1992. "The Role of Household Production in Models of Involuntary Unemployment and Underemployment," Canadian Journal of Economics, Canadian Economics Association, vol. 25(3), pages 507-20, August.
- Cho, Jang-Ok & Rogerson, Richard, 1988. "Family labor supply and aggregate fluctuations," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 233-245.
- Greenwood, J. & Rogerson, R. & Wright, R., 1993. "Household Production in Real Business Cycle Thoery," RCER Working Papers 347, University of Rochester - Center for Economic Research (RCER).
When requesting a correction, please mention this item's handle: RePEc:eee:jmacro:v:22:y:2000:i:1:p:85-108. 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: (Zhang, Lei)
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.