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Financial shocks and labor market fluctuations

Abstract:
This paper investigates the effect of financial shocks using an estimated gen-eral equilibrium model that links the firm's ‡flows of financing with labor marketvariables. The results show that fi nancial shocks have sizeable effects on financialvariables, vacancy posting, unemployment and wages. Shocks to the job destruc-tion rate are important in describing ‡fluctuations in unemployment. The analysisalso investigates the underlying driving forces of some key comovements in thedata.
Publication status:
Published

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Publisher:
University of Oxford
Series:
Department of Economics Discussion Paper Series
Publication date:
2015-05-27
Paper number:
Number 746


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Pubs id:
1143652
Local pid:
pubs:1143652
Deposit date:
2020-12-15
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