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SSRN Electronic Journal
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EconStor
Research . 2010
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The Vanishing Procyclicality of Labor Productivity

Authors: Jordi Galí; Thijs van Rens;

The Vanishing Procyclicality of Labor Productivity

Abstract

AbstractWe document two changes in post-war US macroeconomic dynamics: the procyclicality of labour productivity vanished, and the relative volatility of employment rose. We propose an explanation for these changes that is based on reduced hiring frictions due to improvements in information about the quality of job matches and the resulting decline in turnover. We develop a simple model with hiring frictions and variable effort to illustrate the mechanisms underlying our explanation. We show that our model qualitatively and quantitatively matches the observed changes in business cycle dynamics.

Country
Spain
Keywords

HD, Konjunktur, Reallohn, labor hoarding, labor market frictions, wage rigidities, effort choice, Labor hoarding, Lohnrigidität, labor hoarding, labor hoarding, labor market frictions, wage rigidities, effort choice., Macroeconomics and International Economics, wage rigidities, labor hoarding, labor market turnover, hiring frictions, Wage rigidities, effort choice, USA, E32, effort choice., effort choice; hiring frictions; labor hoarding; labor market turnover; wage rigidities, ddc:330, Arbeitsnachfrage, Arbeitsproduktivität, labor market frictions, Volatilität, Beschäftigung, Arbeitsmarktflexibilisierung, effort choice, E24, wage rigidities, labor market frictions, labor hoarding, effort choice, Schätzung, jel: jel:E24, jel: jel:E32

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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
58
Top 10%
Top 10%
Top 10%
Green
hybrid