Department of Economics and Business - Universitat Pompeu Fabra

Title:: Embodied technical change and the fluctuations of wages and unemployment
Author:: Michael Reiter
Date:: October 2006
Abstract:: The paper shows that a matching model where technological change is partially embodied in the job match is successful in explaining the variability of unemployment and vacancies. If we incorporate long-term wage contracts into the model, it also explains a number of stylized facts on the dynamics of real wages, which have been found in the empirical labor literature.
Keywords:: Unemployment, wage dynamics, embodied technical change
JEL codes:: E24, E32, J64
Area of Research:: Macroeconomics and International Economics

Download the paper in PDF format