Job Turnover, Unemployment and Labor Market Institutions

Gilles Joseph (), Olivier Pierrard and Henri Sneessens

No 2003013, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine the consequences of introducing an unemployment benefit, a firing cost and a downward wage rigidity. The simulations suggest that downward wage rigidities, rather than unemployment benefit or firing cost, may well play a dominant role in explaining both the high unemployment rate and the job flows dynamics of such an economy.

Keywords: Unemployment; Job flows dynamics; Institutions (search for similar items in EconPapers)
JEL-codes: E24 J38 J63 J65 (search for similar items in EconPapers)
Pages: 27
Date: 2003-09-01
New Economics Papers: this item is included in nep-ltv
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Job turnover, unemployment and labor market institutions (2004)
Working Paper: Job Turnover, Unemployment and Labor Market Institutions (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2003013

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