Labor Markets and Business Cycles


Book Description

Labor Markets and Business Cycles integrates search and matching theory with the neoclassical growth model to better understand labor market outcomes. Robert Shimer shows analytically and quantitatively that rigid wages are important for explaining the volatile behavior of the unemployment rate in business cycles. The book focuses on the labor wedge that arises when the marginal rate of substitution between consumption and leisure does not equal the marginal product of labor. According to competitive models of the labor market, the labor wedge should be constant and equal to the labor income tax rate. But in U.S. data, the wedge is strongly countercyclical, making it seem as if recessions are periods when workers are dissuaded from working and firms are dissuaded from hiring because of an increase in the labor income tax rate. When job searches are time consuming and wages are flexible, search frictions--the cost of a job search--act like labor adjustment costs, further exacerbating inconsistencies between the competitive model and data. The book shows that wage rigidities can reconcile the search model with the data, providing a quantitatively more accurate depiction of labor markets, consumption, and investment dynamics. Developing detailed search and matching models, Labor Markets and Business Cycles will be the main reference for those interested in the intersection of labor market dynamics and business cycle research.




OECD Employment Outlook 2024 The Net-Zero Transition and the Labour Market


Book Description

The transition to net-zero emissions by 2050 will have profound impacts on the labour market and the jobs of millions of workers. Aggregate effects on employment are estimated to be limited. But many jobs will be lost in the shrinking high-emission industries, while many others will be created in the expanding low-emission activities. This edition of the OECD Employment Outlook examines the characteristics of the jobs that are likely to thrive because of the transition (“green-driven jobs”), including their attractiveness in terms of job quality, and compares them to jobs in high-emission industries that tend to shrink. The cost of job displacement in these latter industries is assessed along with the trajectories of workers out of them towards new opportunities, and the labour market policies that can facilitate job reallocation. Particular attention is devoted to upskilling and reskilling strategies to facilitate workers’ transition into fast-growing, green-driven occupations. The distributive impacts of climate-change mitigation policies are also examined, with a focus on carbon pricing and options to redistribute its tax revenue to those most impacted. As usual, the first chapter of the Outlook assesses recent labour market developments (including wage trends), but also provides an update of the OECD Job Quality indicators.




Smooth Path or Long and Winding Road?


Book Description

The book uses a comparative study of Germany and Britain to reveal how national institutions shape the labour market careers of higher education graduates. It identifies four institutional spheres that are important: the structure of higher education systems, the content of study, the structure of graduate labour markets, and labour market flexibility. Due to country differences, the transition from higher education to work in Germany follows a smooth path, while in Britain it is more comparable to a long and winding road.




Economic Growth, Transition, and Globalization in China


Book Description

This book addresses a number of important topics and issues associated with China's economic transition, growth and global integration. The chapters, by a distinguished group of scholars, provide a timely assessment of recent developments in the Chinese economy. The authors employ contemporary economic theory and the latest statistics to analyze the sources and spillover effects of China's growth, to investigate the relationship between growth and business cycle, and to shed light on China's growth prospects in the coming decade. In the context of growth, transition and globalization, the chapters also cover issues such as labour economics, urban efficiency, banking and macroeconomic management. Economic Growth, Transition and Globalization in China is a highly focused and unique work of direct policy relevance and is aimed at an international audience. It is an invaluable combination of rigorous theoretical work and empirical material. This timely book should be an important reference for researchers and students of Asian studies, and the Chinese economy, in particular. It will also appeal to business analysts.




IMF Staff papers, Volume 45 No. 2


Book Description

This paper analyzes contagion and volatility with imperfect credit markets. The paper interprets contagion effects as an increase in the volatility of shocks impinging on the economy. The implications of this approach are analyzed in a model in which domestic banks borrow at a premium on world capital markets, and domestic producers borrow at a premium from domestic banks. Financial spreads depend on a markup that compensates lenders, in particular, for the expected cost of contract enforcement. Higher volatility increases financial spreads and the producers’ cost of capital.







The Global Labour Market


Book Description

As global power relations increasingly favour international capital, it becomes crucial for labour and employment lawyers to center their field in a supranational context. As long as wages, social security, and taxes remain national matters, states compete at this level in order to attract foreign investment. This does not bode well for employees or the self-employed. Most ameliorative measures come in the form of unenforceable and‘soft lawand’ guidelines and recommendations. The conference recorded in this vitally important book confronts this losing battle of local responses to global challenges. The book reprints the papers submitted to that conference by twenty-three outstanding scholars from fourteen countries. Among the many critical issues they expose and discuss are the following: and• the proliferation of varieties of non-standard employment; and• protection of migrant workersand’ rights by regional organizations; and• global and regional trends in the human resources function; and• work training and education policy; and• effectiveness of equality and non-discrimination standards; and• involvement of employees in workplace decisionmaking; and and• the need for an equitable social safety net. In the course of the discussion the authors examine cases from many countries, including not only EU Member States (both West and East) and the U.S., but also Japan, Chile, South Africa, and Indonesia. With a focus on the nexus of multinational enterprises and international standards, the book provides both a sharp image of where labour law stands in todayand’s worldand—revealing serious social problems in a clearer light than is usually encounteredand—and a very valuable guide to directions to pursue and potential solutions, offered by some of the most engaged and committed minds in the field. It is an indispensable resource for legal workers in this and‘eye of the stormand’ of globalization.