Labor Market Institutions and Wage and Inflation Dynamics

dc.contributor.authorMacit, Fatih
dc.date.accessioned2024-03-13T10:35:11Z
dc.date.available2024-03-13T10:35:11Z
dc.date.issued2010
dc.departmentİstanbul Beykent Üniversitesien_US
dc.description.abstractThis paper develops a New Keynesian (NK) model that incorporates standard search and matching structure with firing costs. I analyze how labor market institutions affect the macroeconomic dynamics, in particular, wage and inflation dynamics. I particularly look at two important labor market institutions namely unemployment benefits and firing costs. I find that in countries where unemployment benefits are higher and there are more strict employment protection legislations, inflation and wages become less volatile and more persistent. I also find that the level of these labor market institutions affect how wages and inflation respond to exogenous shocks, in particular, to productivity and monetary policy shocks. I first present some empirical evidence that shows a cross-country link between labor market institutions and wages and inflation. Then I build a dynamic stochastic general equilibrium model which provides theoretical support for this empirical evidence.en_US
dc.identifier.doi10.1016/S0313-5926(10)50038-9
dc.identifier.endpage410en_US
dc.identifier.issn0313-5926
dc.identifier.issue3en_US
dc.identifier.scopus2-s2.0-83555172863en_US
dc.identifier.scopusqualityQ1en_US
dc.identifier.startpage393en_US
dc.identifier.urihttps://doi.org/10.1016/S0313-5926(10)50038-9
dc.identifier.urihttps://hdl.handle.net/20.500.12662/4294
dc.identifier.volume40en_US
dc.identifier.wosWOS:000213276100009en_US
dc.identifier.wosqualityN/Aen_US
dc.indekslendigikaynakWeb of Scienceen_US
dc.indekslendigikaynakScopusen_US
dc.language.isoenen_US
dc.publisherElsevier Science Bven_US
dc.relation.ispartofEconomic Analysis And Policyen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.titleLabor Market Institutions and Wage and Inflation Dynamicsen_US
dc.typeArticleen_US

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