Labor Market Dynamics: a Time-varying Analysis

Francesco Zanetti and Haroon Mumtaz

No 728, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: This paper studies how key labor market stylized facts and the responses of labor market variables to technology shocks vary over the US postwar period. It uses a benchmark DSGE model enriched with labor market frictions and investment specific technological progress that enables a novel identification scheme based on sign restrictions on a SVAR with time-varying coefficients and stochastic volatility. Key findings are: i) the volatility in job finding and separation rates has declined over time, while their correlation varies across time; ii) the job finding rate plays an important role for unemployment, and the two series are strongly negatively correlated over the sample period; iii) the magnitude of the response of labor market variables to technology shocks varies across the sample period.

Keywords: Technology shocks; labor market frictions; Bayesian SVAR methods; sign restrictions (search for similar items in EconPapers)
JEL-codes: C32 E32 (search for similar items in EconPapers)
Date: 2014-10-29
New Economics Papers: this item is included in nep-dge, nep-lab, nep-lma and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ora.ox.ac.uk/objects/uuid:ee58181c-0d2c-4298-8d3b-1327f97e0ba4 (text/html)

Related works:
Journal Article: Labor Market Dynamics: A Time-Varying Analysis (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oxf:wpaper:728

Access Statistics for this paper

More papers in Economics Series Working Papers from University of Oxford, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Anne Pouliquen ( this e-mail address is bad, please contact ).