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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- Sheen, Jeffrey & Wang, Ben Z., 2014. "An Estimated Small Open Economy Model with Labour Market Frictions," Dynare Working Papers 35, CEPREMAP.
- 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.
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