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2010
- handle: 10670/1.9xqvth
- halshs: halshs-00640674
- doi: 10.1016/j.labeco.2010.04.005
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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.labeco.2010.04.005
Mots-clés
Credit markets labour markets unemployment credit constraints search frictions E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity E - Macroeconomics and Monetary Economics/E.E4 - Money and Interest Rates/E.E4.E44 - Financial Markets and the Macroeconomy J - Labor and Demographic Economics/J.J0 - General/J.J0.J08 - Labor Economics Policies J - Labor and Demographic Economics/J.J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers/J.J6.J64 - Unemployment: Models, Duration, Incidence, and Job SearchSujets proches
JoblessnessCiter ce document
Nicolas Dromel et al., « Credit Constraints and the Persistence of Unemployment », HAL-SHS : économie et finance, ID : 10.1016/j.labeco.2010.04.005
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Résumé
In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its persistence. For this purpose, we first develop a theoretical model based on the equilibrium matching framework of Mortensen and Pissarides (1999) and Pissarides (2000) where we introduce credit constraints. We show these credit constraints not only increase steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a country panel dataset of 20 OECD countries. Our results suggest that credit market imperfections significantly increase the persistence of unemployment.