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EnglishWe add a public employment sector to the basic search and matching model in order to study the business cycle impact of public wage and employment policies. The government is assumed to follow exogenous rules for public wages and employment calibrated to match some cyclical features of the US policies. These features include a positive public wage premium and mildly pro-cyclical public wages and employment. We find that the presence of the public sector increases the volatility of employment and output.
| Titolo: | Public employment and the business cycle | |
| Data di pubblicazione: | 2007 | |
| Data di prima pubblicazione online: | 2007 | |
| Autori: | ||
| Autori: | Quadrini, VIncenzo; Trigari, Antonella | |
| Rivista: | SCANDINAVIAN JOURNAL OF ECONOMICS | |
| Abstract: | We add a public employment sector to the basic search and matching model in order to study the business cycle impact of public wage and employment policies. The government is assumed to follow exogenous rules for public wages and employment calibrated to match some cyclical features of the US policies. These features include a positive public wage premium and mildly pro-cyclical public wages and employment. We find that the presence of the public sector increases the volatility of employment and output. | |
| Digital Object Identifier (DOI): | http://dx.doi.org/10.1111/j.1467-9442.2007.00517.x | |
| Appare nelle tipologie: | 01 - Article in academic journal / Articolo su rivista scientifica |
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