Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/28328
Authors: 
Balleer, Almut
Year of Publication: 
2009
Series/Report no.: 
Kiel Working Paper 1500
Abstract: 
Can the standard search-and-matching labor market model replicate the business cycle fluctuations of the job finding rate and the unemployment rate? In the model, fluctuations are prominently driven by productivity shocks which are commonly interpreted as technology shocks. I estimate different types of technology shocks from structural VARs and reassess the empirical performance of the standard model based on second moments that are conditional on technology shocks. Most prominently, the model replicates the conditional volatility of job finding and unemployment, so that the Shimer critique does not apply. Instead the model lacks non-technological disturbances to replicate the overall sample volatility. In addition, positive technology shocks lead to a fall in job finding and an increase in unemployment thereby opposing the dynamics in the standard model similar to the hours puzzle in Galí (1999).
Subjects: 
Labor market dynamics
technology shocks
structural VAR
search and matching
business cycle
JEL: 
E24
E32
O33
Document Type: 
Working Paper

Files in This Item:
File
Size
550.63 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.