Job Turnover, Unemployment and Labor Market Institutions

Gilles Joseph (), Olivier Pierrard and Henri Sneessens

No 835, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine the consequences of introducing an unemployment benefit, a firing cost and a downward wage rigidity. The model is able to reproduce the main cyclical properties of a typical European economy. It also suggests that downward wage rigidities, rather than unemployment benefit or firing cost, may well play a dominant role in explaining both the high unemployment rate and the cyclical properties of such an economy.

Keywords: institutions; job flows dynamics; unemployment (search for similar items in EconPapers)
JEL-codes: E24 J38 J63 J65 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2003-07
New Economics Papers: this item is included in nep-dge, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Labour Economics, 2004, 11 (4), 451-468

Downloads: (external link)
https://docs.iza.org/dp835.pdf (application/pdf)

Related works:
Journal Article: Job turnover, unemployment and labor market institutions (2004)
Working Paper: Job Turnover, Unemployment and Labor Market Institutions (2003)
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:iza:izadps:dp835

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().