EconPapers    
Economics at your fingertips  
 

Hours and employment implications of search frictions: matching aggregate and establishment-level observations

Russell W. Cooper, John Haltiwanger and Jonathan Willis ()

No RWP 06-14, Research Working Paper from Federal Reserve Bank of Kansas City

Abstract: This paper studies worker and job flows at the establishment and aggregate levels. The paper is built around a set of facts concerning the variability of unemployment and vacancies in the aggregate, the distribution of net employment growth and the comovement of hours and employment growth at the establishment level. A search model with frictions in hiring and firing is used as a framework to understand these observations. Notable features of this search model include non-convex costs of posting vacancies, establishment level profitability shocks and a contracting framework that determines the response of hours and wages to shocks. We specify and estimate the parameters of the search model using simulated method of moments to match establishment-level and aggregate observations.

Keywords: Employment; Unemployment; Hours of labor (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-lab
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.kansascityfed.org/Publicat/Reswkpap/PDF/RWP06-14.pdf (application/pdf)

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:fip:fedkrw:rwp06-14

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Research Working Paper from Federal Reserve Bank of Kansas City Contact information at EDIRC.
Series data maintained by Lu Dayrit ().

 
Page updated 2017-10-17
Handle: RePEc:fip:fedkrw:rwp06-14