Labour Market Dynamics in Australia
This paper estimates a stylized search and matching model on data for Australia covering the period 1978-2008. Using Bayesian methods we find that the model does a fairly good job in replicating the data. Surprisingly, we find a large value for the worker’s bargaining power and low vacancy posting costs. The model generates a strong Beveridge curve and matches the standard deviations of all variables but vacancies. We identify technology and separation shocks to be the main driver of fluctuations.
|Date of creation:||2013|
|Date of revision:|
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Web page: https://mpra.ub.uni-muenchen.de
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- Olivier Blanchard & Jordi Galí, 2010.
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- Phillip Chindamo & Lawrence Uren, 2010. "Vacancies and Unemployment in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(2), pages 136-152.
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IEW - Working Papers
351, Institute for Empirical Research in Economics - University of Zurich.
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- repec:oup:restud:v:61:y:1994:i:3:p:397-415 is not listed on IDEAS
- Natalia Ponomareva & Jeffrey Sheen, 2010. "Cyclical Flows in Australian Labour Markets," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 35-48, 09.
- Antonella Trigari, 2006. "The Role of Search Frictions and Bargaining for Inflation Dynamics," Working Papers 304, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- 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.
- Sheen, Jeffrey & Wang, Ben Z., 2014. "An Estimated Small Open Economy Model with Labour Market Frictions," Dynare Working Papers 35, CEPREMAP.
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