EconPapers    
Economics at your fingertips  
 

The Vanishing Procyclicality of Labor Productivity

Jordi Galí () and Thijs van Rens ()

No 270221, Economic Research Papers from University of Warwick - Department of Economics

Abstract: We document three changes in postwar US macroeconomic dynamics: (i) the procyclicality of labor productivity vanished, (ii) the relative volatility of employment rose, and (iii) the relative (and absolute) volatility of the real wage rose. We propose an explanation for all three changes that is based on a common source: the decline in labor market turnover, which reduced hiring frictions. We develop a simple model with hiring frictions, variable e§ort, and endogenous wage rigidities to illustrate the mechanisms underlying our explanation. We show that the decline in turnover may also have contributed to the observed decline in output volatility

Keywords: Financial Economics; Labor and Human Capital (search for similar items in EconPapers)
Pages: 47
Date: 2014-01-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://ageconsearch.umn.edu/record/270221/files/twerp_1062_van_rens.pdf (application/pdf)
https://ageconsearch.umn.edu/record/270221/files/t ... s.pdf?subformat=pdfa (application/pdf)

Related works:
Working Paper: The Vanishing Procyclicality of Labour Productivity (2020) Downloads
Working Paper: The Vanishing Procyclicality of Labour Productivity (2020) Downloads
Working Paper: The Vanishing Procyclicality of Labor Productivity (2015) Downloads
Working Paper: The Vanishing Procyclicality of Labor Productivity (2014) Downloads
Working Paper: The Vanishing Procyclicality of Labor Productivity (2014) Downloads
Working Paper: The Vanishing Procyclicality of Labor Productivity (2010) Downloads
Working Paper: The Vanishing Procyclicality of Labor Productivity (2010) Downloads
Working Paper: The vanishing procyclicality of labor productivity (2010) Downloads
Working Paper: The vanishing procyclicality of labor productivity (2010) Downloads
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:ags:uwarer:270221

DOI: 10.22004/ag.econ.270221

Access Statistics for this paper

More papers in Economic Research Papers from University of Warwick - Department of Economics
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2021-04-09
Handle: RePEc:ags:uwarer:270221