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They are even larger! More (on) puzzling labor market volatilities

Author

Listed:
  • Gartner, Hermann

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Merkl, Christian

    (IZA ; Kiel Institute for the World Economy)

  • Rothe, Thomas

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"This paper shows that the German labor market is more volatile than the US labor market at the business cycle frequency. Specifically, the volatility of the cyclical component of several labor market variables (e.g., the job-finding rate, the labor market tightness and vacancies) divided by the volatility of labor productivity is roughly twice as large as in the United States. We derive and simulate a simple model to explain this seemingly puzzling result. This new model provides explanations for this phenomenon, in particular the longer job tenure in Germany." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Gartner, Hermann & Merkl, Christian & Rothe, Thomas, 2009. "They are even larger! More (on) puzzling labor market volatilities," IAB-Discussion Paper 200912, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:200912
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; USA ; Beschäftigungsdauer ; Beschäftigungsschwankung ; Betriebszugehörigkeit ; institutionelle Faktoren ; internationaler Vergleich ; Konjunkturabhängigkeit ; Kündigung ; labour turnover ; Lohnfindung ; Lohnhöhe ; matching ; offene Stellen ; Produktivitätsentwicklung ; Quote ; Quote ; Arbeitslosenquote ; Arbeitsmarktindikatoren ; Arbeitsproduktivität ; 1977-2004;
    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
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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