IDEAS home Printed from https://ideas.repec.org/p/nav/ecupna/0903.html
   My bibliography  Save this paper

A New Keynesian analysis of industrial employment fluctuations

Author

Abstract

This paper describes a model with sticky prices, search frictions and hours-clearing wages that provides firm differentiation across several dimensions: price, output, wage, employment and hours per worker. The connection between pricing and hiring decisions results in firm-level employment fluctuations that depend upon sticky prices, search costs, demand elasticity and labor supply elasticity. The calibrated model is able to match average US industrial employment volatility when assuming a small industrial size, providing one possible answer to Shimer (2005a)´s puzzle.

Suggested Citation

  • Miguel Casares, 2009. "A New Keynesian analysis of industrial employment fluctuations," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0903, Departamento de Economía - Universidad Pública de Navarra.
  • Handle: RePEc:nav:ecupna:0903
    as

    Download full text from publisher

    File URL: ftp://ftp.econ.unavarra.es/pub/DocumentosTrab/DT0903.PDF
    Download Restriction: no

    More about this item

    Keywords

    search frictions; sticky prices; industrial employment;

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J4 - Labor and Demographic Economics - - Particular Labor Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nav:ecupna:0903. 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: (Javier Puértolas). General contact details of provider: http://www.econ.unavarra.es .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.