Gartner, Hermann
[Author];
Merkl, Christian
[Author];
Rothe, Thomas
[Author]
;
Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit (IAB)
They are even larger! More (on) puzzling labor market volatilities
Description:
"This paper shows that the German labor market is more volatile than the US labor market at the business cycle frequency. Specifically, the volatility of the cyclical component of several labor market variables (e.g., the job-finding rate, the labor market tightness and vacancies) divided by the volatility of labor productivity is roughly twice as large as in the United States. We derive and simulate a simple model to explain this seemingly puzzling result. This new model provides explanations for this phenomenon, in particular the longer job tenure in Germany." (author's abstract)