The vanishing procyclicality of labor productivity

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Galí, Jordi; van Rens, Thijs. The vanishing procyclicality of labor productivity. 2008
To cite or link this document: Galí, Jordi van Rens, Thijs
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa 2008-08-01
dc.description.abstract 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.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1230
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.title The vanishing procyclicality of labor productivity
dc.type info:eu-repo/semantics/workingPaper 2016-06-04T02:51:10Z
dc.subject.keyword Macroeconomics and International Economics
dc.subject.keyword labor hoarding
dc.subject.keyword labor market frictions
dc.subject.keyword wage rigidities
dc.subject.keyword effort choice.
dc.rights.accessRights info:eu-repo/semantics/openAccess

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