Paper #1230
- Título:
- The vanishing procyclicality of labor productivity
- Autores:
- Jordi GalĂ y Thijs van Rens
- Data:
- Agosto 2008
- Resumen:
- We document three changes in postwar US macroeconomic dynamics: (i) the procyclicality of labor productivity has vanished, (ii) the relative volatility of employment has risen, and (iii) the relative (and absolute) volatility of the real wage has risen. We propose an explanation for all three changes that is based on a common source: a decline in labor market frictions. We develop a simple model with labor market frictions, variable effort, and endogenous wage rigidities to illustrate the mechanisms underlying our explanation. We show that the reduction in frictions may also have contributed to the observed decline in output volatility.
- Palabras clave:
- labor hoarding, labor market frictions, wage rigidities, effort choice.
- Códigos JEL:
- E24; E32.
- Área de investigación:
- Macroeconomía y Economía Internacional
- Publicado en:
- The Economic Journal 131(1), 302-326
Descargar el paper en formato PDF