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Role of worker flows in the relationship between job offers and employment

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  • Matsue, Toyoki

Abstract

This study investigates the mechanism determining changes in job offers and analyzes the role of worker flows in the relationship between job offers and employment. It applies a queueing system to dynamic general equilibrium models and analyzes economic fluctuations. The queueing system helps in considering the relationship between job offers and employment and changes in job offers in response to shocks. The numerical simulations indicate that worker flows influence changes in job offers in response to a productivity shock. Although employment fluctuations remain constant, changes in job offers amplify when fewer workers join and/or more workers leave the firm, whereas they decrease when more workers join and/or fewer workers leave. The shock responses of other variables in each model are in line with the reactions of the standard dynamic general equilibrium models. These findings provide important insights into labor market dynamics.

Suggested Citation

  • Matsue, Toyoki, 2022. "Role of worker flows in the relationship between job offers and employment," MPRA Paper 115316, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115316
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    References listed on IDEAS

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    Keywords

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    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
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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