Can the matching model account for Spanish unemployment?
This paper aims to explain the dynamics of the Spanish labour market, focussing in particular on the high persistence of unemployment and the dynamics around the Beveridge curve. We develop a stochastic dynamic general equilibrium model in which we assume that the labour market may be characterised by coordination failures in the matching process between vacancies and the unemployed. The model is then calibrated and simulated for the Spanish economy. Two sources of disturbances are considered: a traditional technological shock that initiates movements along the Beveridge curve; and realloction shocks that shift the Beveridge curve. Our results suggest that the model is capable of accounting for the main stylised facts characterising the Spanish labour market. We also analyse the movements around the Beveridge curve. Our results also indicate that reallocation shocks are the main source of shocks driving labour market dynamics.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +33(0) 1 43 13 62 30
Fax: +33(0) 1 43 13 62 32
Web page: http://www.cepremap.fr/
More information through EDIRC
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.:
- François LANGOT & Muriel PUCCI, 1996. "Participation, unemployment and wage bargaining in a real business cycle model," Discussion Papers (REL - Recherches Economiques de Louvain) 1996034, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Craig Burnside & Martin Eichenbaum & Sergio Rebelo, 1990.
"Labor Hoarding and the Business Cycle,"
NBER Working Papers
3556, National Bureau of Economic Research, Inc.
- Marimon, Ramon & Zilibotti, Fabrizio, 1996.
"'Actual' versus 'Virtual' Employment in Europe: Is Spain Different?,"
CEPR Discussion Papers
1427, C.E.P.R. Discussion Papers.
- Marimon, Ramon & Zilibotti, Fabrizio, 1998. "'Actual' versus 'virtual' employment in Europe Is Spain different?," European Economic Review, Elsevier, vol. 42(1), pages 123-153, January.
- Harald Uhlig, 1998.
"A Toolkit for Analysing Nonlinear Dynamic Stochastic Models Easily,"
123, Quantitative Macroeconomics & Real Business Cycles.
- Harald Uhlig, 1995. "A toolkit for analyzing nonlinear dynamic stochastic models easily," Discussion Paper / Institute for Empirical Macroeconomics 101, Federal Reserve Bank of Minneapolis.
- Dolado, Juan J. & Jimeno, Juan F., 1997.
"The causes of Spanish unemployment: A structural VAR approach,"
European Economic Review,
Elsevier, vol. 41(7), pages 1281-1307, July.
- Juan J. Dolado & Juan F. Jimeno, . "The causes of Spanish unemployment: A structural VAR apporach," Working Papers 96-19, FEDEA.
- Hansen, Gary D., 1985.
"Indivisible labor and the business cycle,"
Journal of Monetary Economics,
Elsevier, vol. 16(3), pages 309-327, November.
- Robert J. Hodrick & Edward Prescott, 1981.
"Post-War U.S. Business Cycles: An Empirical Investigation,"
451, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Hodrick, Robert J & Prescott, Edward C, 1997. "Postwar U.S. Business Cycles: An Empirical Investigation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(1), pages 1-16, February.
- Kydland, Finn E & Prescott, Edward C, 1982.
"Time to Build and Aggregate Fluctuations,"
Econometric Society, vol. 50(6), pages 1345-70, November.
- Finn E. Kydland & Edward C. Prescott, 1982. "Executable program for "Time to Build and Aggregate Fluctuations"," QM&RBC Codes 4, Quantitative Macroeconomics & Real Business Cycles.
- Finn E. Kydland & Edward C. Prescott, 1982. "Web interface for "Time to Build and Aggregate Fluctuations"," QM&RBC Codes 4a, Quantitative Macroeconomics & Real Business Cycles.
- Cheron, Arnaud & Langot, Francois, 2000.
"The Phillips and Beveridge curves revisited,"
Elsevier, vol. 69(3), pages 371-376, December.
- 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.
- Luis A. Puch & Omar Licandro, 1997.
"Are there any special features in the Spanish business cycle?,"
Fundación SEPI, vol. 21(2), pages 361-394, May.
- Luis Puch & Omar Licandro, . "Are there any special features in the Spanish business cycles?," Working Papers 97-06, FEDEA.
- Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 1-76.
- Pablo Antolin, 1995. "Job search behaviour and unempoyment benefits in Spain during the period 1987-1991," Investigaciones Economicas, Fundación SEPI, vol. 19(3), pages 415-433, September.
- Juan José Dolado & Ramón Gómez, 1997. "La relación entre desempleo y vacantes en España: perturbaciones agregadas y de reasignación," Investigaciones Economicas, Fundación SEPI, vol. 21(3), pages 441-472, September.
- Jacques, J.F. & Langot, F., 1992. "Persistance du chomage et marche du travail, la dynamique de la courbe de beveridge," Papiers d'Economie MathÃ©matique et Applications 92.34, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Roger E. A. Farmer, 1999. "Macroeconomics of Self-fulfilling Prophecies, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262062038, June.
- Una-Louise Bell, 1997. "A Comparative Analysis of the Aggregate Matching Process in France, Great Britain and Spain," Banco de Espa�a Working Papers 9721, Banco de Espa�a.
- Hosios, Arthur J, 1990. "On the Efficiency of Matching and Related Models of Search and Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 57(2), pages 279-98, April.
- Danthine, Jean-Pierre & Donaldson, John B., 1990. "Efficiency wages and the business cycle puzzle," European Economic Review, Elsevier, vol. 34(7), pages 1275-1301, November.
- Samuel Bentolila, . "Internal migration in Spain," Working Papers 2001-07, FEDEA.
- Dale T. Mortensen & Christopher A. Pissarides, 1993.
"Job Creation and Job Destruction in the Theory of Unemployment,"
CEP Discussion Papers
dp0110, Centre for Economic Performance, LSE.
- Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
- Andolfatto, David, 1996. "Business Cycles and Labor-Market Search," American Economic Review, American Economic Association, vol. 86(1), pages 112-32, March.
- Merz, Monika, 1999. "Heterogeneous job-matches and the cyclical behavior of labor turnover," Journal of Monetary Economics, Elsevier, vol. 43(1), pages 91-124, February.
When requesting a correction, please mention this item's handle: RePEc:cpm:cepmap:0203. 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: (Stéphane Adjemian)
If references are entirely missing, you can add them using this form.