Stage-specific technology shocks and employment: Could we reconcile with the RBC models?

Chahnez Boudaya

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper analyses the response of labor input to technology shocks in an estimated two-stage production framework with both price and wage stickiness and stage-specific shocks to productivity. Our model features a vertical input-output structure with imperfect mobility of labors across stages. The estimation uses the maximum likelihood technique applied to the post-war US data. Our findings could easily match the standard RBC models predictions: A shock to productivity in the intermediate good production stage i) leads to an increase in both stage-specific labor and the aggregate labor and ii) explains a large proportion of the volatility of both the real GDP and the aggregate labor. Besides, regarding the output-labor correlation, the model does a very good job in matching the data.

Keywords: Sectoral comovements; Technology shocks; Employment; Production chain; Sticky wages; Sticky prices; RBC Models; Stades de production; Rigidités de prix et de salaires; Modèles RBC; Chocs technologiques (search for similar items in EconPapers)
Date: 2006-05
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00115791
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in 2006

Downloads: (external link)
https://shs.hal.science/halshs-00115791/document (application/pdf)

Related works:
Working Paper: Stage-specific technology shocks and employment: Could we reconcile with the RBC models? (2006)
Working Paper: Stage-specific technology shocks and employment:could we reconcile with the RBC models? (2006)
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:hal:cesptp:halshs-00115791

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().