Estimating a Search and Matching Model with Sticky Price and Staggered Wage Negotiation
نویسنده
چکیده
This paper estimates a search and matching model of the aggregate labor market with sticky price and staggered wage negotiation. It starts with a partial equilibrium search and matching model and expands into a general equilibrium model with sticky price and staggered wage. I study the quantitative implications of the model. The results show that (1) the price stickiness and staggered wage are quantitatively important for the search and matching model of the aggregate labor market; (2) a relatively high outside alternative of the workers is needed to match the data; and (3) workers have relatively lower bargaining power than firms, which contrasts with the assumption in the calibration literature that workers and firms share equally the surplus generated from their employment relationship.
منابع مشابه
Employment, Wages and Optimal Monetary Policy
We study optimal monetary policy when the empirical evidence leaves the policymaker uncertain whether the true data-generating process is given by a model with sticky wages or a model with search and matching frictions in the labor market. Unless the policymaker is almost certain about the search and matching model being the correct data-generating process, the policymaker chooses to stabilize ...
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