It has long been argued (Blanchard et al., 1992; Blanchard and Katz, 1997) that shifts in local labor market conditions, geographic variation in labor force demographics (labor supply), and sectoral shifts in industrial patterns (labor demand) might influence the natural rate of unemployment. On the supply side of the labor market this could occur through divergent trends in differential attach...

10 Article history: 11 Received 29 June 2009 12 Received in revised form 24 May 2010 13 Accepted 25 May 2010 14 Available online xxxx 5 We decompose labor productivity growth from 1987 to 2005 by examining six partial factors 16 (both supply and demand): changes in value-added coefficients, labor inputs, shares of sectoral 17 demands that are fulfilled domestically, input mix, and the intra-sec...

Domestic innovations and technology imports play important roles in boosting relative demand for skilled labor force. These factors are in turn influenced by domestic R&D investments and international trade. Using a translog cost function, this paper studies the effect of technology imports and other factors including output level and physical capital stock on the shares of skilled labor force ...

The Labor Demand Was Downward Sloping: Disentangling Migrants’ Inflows and Outflows, 1929-1957 This paper studies inand out-migration from the U.S. during the first half of the twentieth century and assesses how these flows affected state-level labor markets. It shows that outmigration positively impacted the wages of remaining workers, while in-migration had a negative impact. Hence, immigrant...

This paper indicates that East Germany’s unemployment originates primarily in the labor market, caused by the fast wage adjustment after German reunification. We model the resulting labor market traps in a search and matching framework, show that they are difficult to overcome, and provide empirical evidence. We argue that under these circumstances, demand-side policies are effective mainly whe...

Ž . This paper considers the likely impact that European Union EU will have on the labor compact. It is argued that, despite increased economic integration in Europe, countries will still be able to maintain distinct labor practices if they are willing to bear the cost of those practices. The incidence of many social protections probably already falls on workers. In addition, it is argued that ...

Description: Social Interactions in the Labor Market addresses the following questions: How do theoretical economic models and their associated econometric representations change when there are social interactions among households? How do policy implications change as the result of estimated households' social interactions? The authors present a unified theoretical and empirical representation ...

Firms increasingly use contingent labor to flexibly respond to demand in many environments. Labor supply agencies are growing to fill this need. As a result, firms and agencies are engaging in long-term contracts for labor supply. We develop mathematical models of the interaction between firms and labor supply agencies when demand and supply are uncertain. We consider two models of labor supply...

The responsiveness of labor demand and unemployment to growth is an issue of ongoing political and academic interest. Economic growth is supposed to be the key to increase labor demand and reduce unemployment. Departing from Okun’s and Verdoorn’s law, most research on the (un)employment intensity of growth has focused on national disparities and the role of labor market institutions. Empirical ...