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- handle: 10670/1.jjd3zh
- hal: hal-03950264
- doi: 10.1016/j.euroecorev.2019.103352
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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.euroecorev.2019.103352
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Mots-clés
Unemployment volatility Labour frictions Bubbles E - Macroeconomics and Monetary Economics/E.E3 - Prices, Business Fluctuations, and Cycles/E.E3.E32 - Business Fluctuations • Cycles J - Labor and Demographic Economics/J.J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers/J.J6.J60 - GeneralSujets proches
Market, Labor Supply and demand for labor Employees--Supply and demand Standard of value Joblessness Pattern Model TradeCiter ce document
Guillaume Vuillemey et al., « Frictional Unemployment with Stochastic Bubbles », Archive ouverte de Sciences Po (SPIRE), ID : 10.1016/j.euroecorev.2019.103352
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Résumé
We show that the volatility puzzle in labor economics (Shimer, 2005) stems from the inability of technology shocks to generate sufficient volatility of firm value. We introduce non-fundamental shocks to firm value, akin to bubbles, into an otherwise standard search-and-matching model. When calibrated to stock market data, stochastic bubbles significantly improve the ability of the matching model to quantitatively explain the volatility of the US labor market. An extension with multiple sectors improves the persistence of simulated labor market variables.