Employment fluctuations in a dynamic model with long-term and short-term contracts

Toyoki Matsue

MPRA Paper from University Library of Munich, Germany

Abstract: Fluctuations in employment are one of the central issues in the labor market literature and have been investigated in a number of empirical and theoretical studies. This study presents a dynamic framework that can analyze the economy in which long-term and short-term contracts coexist. The particular differences between long-term and short-term contracts are stickiness of employment adjustments and explicit employment duration. The simulation results show that the large short-term employment ratio and the high quit rate lead to the high variations in employment. Moreover, they indicate that the large adjustment cost and the long employment duration bring about decreased employment fluctuations.

Keywords: employment dynamics; dynamic labor demand; labor market institutions; adjustment cost; employment duration (search for similar items in EconPapers)
JEL-codes: D90 E24 J23 J32 J41 (search for similar items in EconPapers)
Date: 2019-12-18
New Economics Papers: this item is included in nep-cta and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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