eTextbook: Labor Markets and Business Cycles

Book Jacket Image

List Price 1: $65.00

eTextbook Purchase: $52.00

You save $13.00

Are you a school looking to buy multiple copies of this book?

  • Free Book Promotion

    For a limited time, this book is eligible for free.

    Click here to redeem the Facebook Offer

    Author(s): Shimer, Robert

    ISBN 10: 0691140227. See all ISBN's

    ISBN 13: 9780691140223

    Edition:

    Publisher: Princeton University Press

    This is an eTextbook Learn More

    Description:

    Labor Markets and Business Cycles integrates search and matching theory with the neoclassical growth model to better understand labor market outcomes. Robert Shimer shows analytically and quantitatively that rigid wages are important for explaining the volatile behavior of the unemployment rate in business cycles.

    The book focuses on the labor wedge that arises when the marginal rate of substitution between consumption and leisure does not equal the marginal product of labor. According to competitive models of the labor market, the labor wedge should be constant and equal to the labor income tax rate. But in U.S. data, the wedge is strongly countercyclical, making it seem as if recessions are periods when workers are dissuaded from working and firms are dissuaded from hiring because of an increase in the labor income tax rate. When job searches are time consuming and wages are flexible, search frictions--the cost of a job search--act like labor adjustment costs, further exacerbating inconsistencies between the competitive model and data. The book shows that wage rigidities can reconcile the search model with the data, providing a quantitatively more accurate depiction of labor markets, consumption, and investment dynamics.

    Developing detailed search and matching models, Labor Markets and Business Cycles will be the main reference for those interested in the intersection of labor market dynamics and business cycle research.

    All ISBN's for this title:

    ISBN 10: 0691140227, ISBN 13: 9780691140223, eISBN 10: 1400835232, eISBN 13: 9781400835232

    1. List price can refer to either the digital or print list price, whichever is available to Kno.
  • Cool Product Features

    Kno In Action

    Search

    Journal

    Flashcards

    Kno Me

    Smart Links