Unemployment, the Variability of Hours, and the Persistence of "Disturbances": A Private Information Approach

Bruce Smith

International Economic Review, 1989, vol. 30, issue 4, 921-38

Abstract: A real business cycle model is developed in which the workforce is heterogeneous. Workers are privately informed about their own productive abilities. It is shown that the presence of private information creates a mechanism for enhancing the variability of hours worked, as well as "channels of persistence." Moreover, aggregate hours worked can respond strongly to variations in average productivity (real wages), even though observed responses of hours worked to real wage movements are small for all individuals in the model. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1989
References: Add references at CitEc
Citations:

Downloads: (external link)
http://links.jstor.org/sici?sici=0020-6598%2819891 ... O%3B2-D&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: UNEMPLOYMENT, THE VARIABILITY OF HOURS, AND THE PERSISTENCE OF DISTURBANCES: A PRIVATE INFORMATION APPROACH (1988)
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:ier:iecrev:v:30:y:1989:i:4:p:921-38

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598

Access Statistics for this article

International Economic Review is currently edited by Harold L. Cole

More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and ().