They are even larger! More (on) puzzling labor market volatilities

Hermann Gartner, Christian Merkl and Thomas Rothe

No 1545, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper shows that the German labor market is more volatile than the US labor market. Specifically, the volatility of the cyclical component of several labor market variables (e.g., the job-finding rate, labor market tightness, and job vacancies) divided by the volatility of labor productivity is roughly twice as large as in the United States. We derive and simulate a simple dynamic labor market model with heterogeneous worker productivity. This model is able to explain the higher German labor market volatilities by a longer expected job duration.

Keywords: Labor Market Volatilities; Unemployment; Worker Flows; Vacancies; Job-Finding Rate; Market Tightness (search for similar items in EconPapers)
JEL-codes: E24 E32 J6 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Journal Article: Sclerosis and large volatilities: Two sides of the same coin (2012)
Working Paper: They are even larger! More (on) puzzling labor market volatilities (2009)
Working Paper: They Are Even Larger! More (on) Puzzling Labor Market Volatilities (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1545

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