Stage-specific technology shocks and employment:could we reconcile with the RBC models?

Chahnez Boudaya

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: This paper analyses the response of labor input to technology shocks in an estimated two-stage production framework with both price and wage stickiness and stage-specific shocks to productivity. Our model features a vertical input-output structure with imperfect mobility of labors across stages. The estimation uses the maximum likelihood technique applied to the post-war US data. Our findings could easily match the standard RBC models predictions: A shock to productivity in the intermediate good production stage i) leads to an increase in both stage-specific labor and the aggregate labor and ii) explains a large proportion of the volatility of both the real GDP and the aggregate labor. Besides, regarding the output-labor correlation, the model does a very good job in matching the data

Keywords: RBC models; sticky prices; sticky wages; production chain; employment; technology shocks; sectoral comovements (search for similar items in EconPapers)
JEL-codes: E24 E32 E52 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2006-05
New Economics Papers: this item is included in nep-dge and nep-mac
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https://halshs.archives-ouvertes.fr/halshs-00115791 (application/pdf)

Related works:
Working Paper: Stage-specific technology shocks and employment: Could we reconcile with the RBC models? (2006)
Working Paper: Stage-specific technology shocks and employment: Could we reconcile with the RBC models? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:wpsorb:v06043

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