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Wage Posting and Business Cycles: a Quantitative Exploration

Listed author(s):
  • Giuseppe Moscarini

    (Yale University)

  • Fabien Postel-Vinay

    (University College London)

e provide a quantitative exploration of business cycles in a frictional labor market under contract-posting. The steady-state random search and wage-posting model of Burdett and Mortensen (1998) has become the canonical structural framework for empirical analysis of worker turnover and equilibrium wage dispersion. In this paper, we provide an efficient algorithm to simulate a dynamic stochastic equilibrium version of this model, the Stochastic Burdett-Mortensen model, and evaluate its performance against empirical evidence on fluctuations in unemployment, vacancies and wages. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2015.11.001
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Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 19 (2016)
Issue (Month): (January)
Pages: 135-160

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Handle: RePEc:red:issued:14-333
DOI: 10.1016/j.red.2015.11.001
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  1. Giuseppe Moscarini & Fabien Postel-Vinay, 2013. "Stochastic Search Equilibrium," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1545-1581.
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  6. Bils, Mark & Chang, Yongsung & Kim, Sun-Bin, 2012. "Comparative advantage and unemployment," Journal of Monetary Economics, Elsevier, vol. 59(2), pages 150-165.
  7. Giuseppe Moscarini & Fabien Postel-Vinay, 2016. "Did the Job Ladder Fail after the Great Recession?," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 55-93.
  8. Fabien Postel-Vinay & Jean-Marc Robin, 2002. "Equilibrium Wage Dispersion with Worker and Employer Heterogeneity," Econometrica, Econometric Society, vol. 70(6), pages 2295-2350, November.
  9. Bontemps, Christian & Robin, Jean-Marc & van den Berg, Gerard J, 2000. "Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(2), pages 305-358, May.
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  26. Giuseppe Moscarini & Fabien Postel-Vinay, 2009. "The Timing of Labor Market Expansions: New Facts and a New Hypothesis," NBER Chapters,in: NBER Macroeconomics Annual 2008, Volume 23, pages 1-51 National Bureau of Economic Research, Inc.
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