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Cyclical Part-Time Employment in an Estimated New Keynesian Model with Search Frictions

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Abstract

This paper analyzes the dynamics of full-time employment and part-time employment over the business cycle. We first document basic macroeconomic facts on these employment stocks using the U.S. data and decompose their cyclical dynamics into the contributions of different flows into and out of these stocks. Second, we develop and estimate a New Keynesian search-and-matching model with two labor markets to uncover the fundamental driving forces of the cyclical dynamics of employment stocks. We find that the procyclicality of the net flow from part-time to full-time employment is essential in accounting for countercyclical patterns of part-time employment.

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  • Toshihiko Mukoyama & Mototsugu Shintani & Kazuhiro Teramoto, 2018. "Cyclical Part-Time Employment in an Estimated New Keynesian Model with Search Frictions," Working Papers gueconwpa~18-18-04, Georgetown University, Department of Economics.
  • Handle: RePEc:geo:guwopa:gueconwpa~18-18-04
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    Cited by:

    1. Susanto Basu & Giacomo Candian & Ryan Chahrour & Rosen Valchev, 2021. "Risky Business Cycles," Boston College Working Papers in Economics 1029, Boston College Department of Economics.
    2. Fontaine, Idriss, 2019. "Dynamics of part-time employment to an aggregate shock: A sign-restriction approach," Economics Letters, Elsevier, vol. 183(C), pages 1-1.
    3. Idriss Fontaine, 2019. "Dynamics of Part-Time Employment to an Aggregate Shock: a Sign-Restriction Approach," Working Papers hal-03665947, HAL.

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    More about this item

    Keywords

    Part-time employment; Bayesian estimation; DSGE model; Search; matching and bargaining.;
    All these keywords.

    JEL classification:

    • 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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