On the cyclical behavior of employment, unemployment and labor force participation

Marcelo Veracierto

No WP-02-12, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: In this paper I evaluate to what extent a real business cycle (RBC) model that incorporates search and leisure decisions can simultaneously account for the observed behavior of employment, unemployment and out-of-the-labor-force. This contrasts with the previous RBC literature, which analyzed employment or hours fluctuations by either lumping together unemployment and out-of-the-labor-force into a single non-employment state or assuming a fixed labor force participation. Once the three employment states are explicitly introduced I find that the RBC model generates highly counterfactual labor market dynamics.

Keywords: Employment (Economic theory); Labor market; Labor supply; Unemployment (search for similar items in EconPapers)
Date: 2002
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

Downloads: (external link)
http://www.chicagofed.org/digital_assets/publicati ... s/2002/wp2002-12.pdf (application/pdf)

Related works:
Journal Article: On the cyclical behavior of employment, unemployment and labor force participation (2008)
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:fip:fedhwp:wp-02-12

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Paper Series from Federal Reserve Bank of Chicago Contact information at EDIRC.
Bibliographic data for series maintained by Lauren Wiese ().