News and labor market dynamics in the data and in matching models
This paper uses a VAR model estimated with Bayesian methods to identify the effect of productivity news shocks on labor market variables by imposing that they are orthogonal to current technology but they explain future observed technology. In the aftermath of a positive news shock, unemployment fa...
| Main Authors: | , |
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| Format: | Working paper |
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University of Oxford
2014
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| _version_ | 1826272155334082560 |
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| author | Zanetti, F Theodoridis, K |
| author_facet | Zanetti, F Theodoridis, K |
| author_sort | Zanetti, F |
| collection | OXFORD |
| description | This paper uses a VAR model estimated with Bayesian methods to identify the effect of productivity news shocks on labor market variables by imposing that they are orthogonal to current technology but they explain future observed technology. In the aftermath of a positive news shock, unemployment falls, whereas wages and the job finding rate increase. The analysis establishes that news shocks are important in explaining the historical developments in labor market variables, whereas they play a minor role for movements in real activity. We show that the empirical responses to news shocks are in line with those of a baseline search and matching model of the labor market and that the job destruction rate and real wage rigidities are critical for the variables' responses to the news shock. |
| first_indexed | 2024-03-06T22:08:04Z |
| format | Working paper |
| id | oxford-uuid:50d6ebee-36d4-4a3b-b1f9-804bfb4f6cde |
| institution | University of Oxford |
| last_indexed | 2024-03-06T22:08:04Z |
| publishDate | 2014 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:50d6ebee-36d4-4a3b-b1f9-804bfb4f6cde2022-03-26T16:15:58ZNews and labor market dynamics in the data and in matching modelsWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:50d6ebee-36d4-4a3b-b1f9-804bfb4f6cdeBulk import via SwordSymplectic ElementsUniversity of Oxford2014Zanetti, FTheodoridis, KThis paper uses a VAR model estimated with Bayesian methods to identify the effect of productivity news shocks on labor market variables by imposing that they are orthogonal to current technology but they explain future observed technology. In the aftermath of a positive news shock, unemployment falls, whereas wages and the job finding rate increase. The analysis establishes that news shocks are important in explaining the historical developments in labor market variables, whereas they play a minor role for movements in real activity. We show that the empirical responses to news shocks are in line with those of a baseline search and matching model of the labor market and that the job destruction rate and real wage rigidities are critical for the variables' responses to the news shock. |
| spellingShingle | Zanetti, F Theodoridis, K News and labor market dynamics in the data and in matching models |
| title | News and labor market dynamics in the data and in matching models |
| title_full | News and labor market dynamics in the data and in matching models |
| title_fullStr | News and labor market dynamics in the data and in matching models |
| title_full_unstemmed | News and labor market dynamics in the data and in matching models |
| title_short | News and labor market dynamics in the data and in matching models |
| title_sort | news and labor market dynamics in the data and in matching models |
| work_keys_str_mv | AT zanettif newsandlabormarketdynamicsinthedataandinmatchingmodels AT theodoridisk newsandlabormarketdynamicsinthedataandinmatchingmodels |