TECHNOLOGICAL LEARNING AND LABOR MARKET DYNAMICS
Martin Gervais (),
Nir Jaimovich (),
Henry Siu () and
Authors registered in the RePEc Author Service: Yaniv Yedid-Levi
International Economic Review, 2015, vol. 56, 27-53
The search‐and‐matching model of the labor market fails to match two important business cycle facts: (i) a high volatility of unemployment relative to labor productivity, and (ii) a mild correlation between these two variables. We address these shortcomings by focusing on technological learning‐by‐doing: the notion that it takes workers' time using a technology before reaching their full productive potential with it. We consider a novel source of business cycles, namely, fluctuations in the speed of technological learning, and show that a search‐and‐matching model featuring such shocks can account for both facts. Moreover, our model provides a new interpretation of recently discussed “news shocks.”
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Working Paper: Technological Learning and Labor Market Dynamics (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:iecrev:v:56:y:2015:i::p:27-53
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