Economics, Econometrics and Finance
4 years ago

Labor market volatility solved: On-the-Job Search model shakes up wage rigidity.

Computing in Economics and Finance
On-the-Job Search and Wage Rigidity in a General Equilibrium Model
Robert Hussey

Paper Summary

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The study developed a model to understand how job search and fixed wages affect the job market during economic cycles. By including these factors, the model accurately predicted changes in job openings and the ratio of job openings to unemployed workers. This helps explain why job availability and turnover fluctuate during different economic conditions.