Endogenous Separations in a Matching Model

Andrew Newell and James Symons

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: The paper develops a model in which employment is an enduring rent-sharing relationship. In each period rents are subject to a transient disturbance, and the parties weigh the future stream of benefits against current dis-benefits. The analysis suggests a strong correlation between real interest rates and aggregate unemployment because high real interest rates makes the employment relationship more fragile. This correlation is demonstrated for a number of time series of aggregate national data.

Date: 1991-06
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:cep:cepdps:dp0035

Access Statistics for this paper

More papers in CEP Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().