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Labor Markets in Heterogenous Sectors

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  • Sergio A. Lago Alves

Abstract

I expand the standard model with labor frictions and matching function, to account to the endogenous decision to either leave the labor market or migrate to a different sector, after a stochastic training period. Sectors (manufacturing and services) are asymmetric, firms are subject to price stickiness, have specific labor force, post vacancies advertisement and explore both the intensive as the extensive margin of labor. After estimating the model with 13 quarterly data from the goods and labor market, from 2003:Q1 to 2014:Q4, I show that the estimated version of this model is able to account for the heterogeneous dynamics of the labor and goods market in Brazil.

Suggested Citation

  • Sergio A. Lago Alves, 2016. "Labor Markets in Heterogenous Sectors," Working Papers Series 421, Central Bank of Brazil, Research Department.
    • Handle: RePEc:bcb:wpaper:421
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    File URL: https://www.bcb.gov.br/content/publicacoes/WorkingPaperSeries/wps421.pdf
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