| 1. |
- Jacobson, Tor, et al.
(författare)
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Are Real Wages and Unemployment Related?
- 1993
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- In this paper we propose an alternative method for investigating the sources behind the behavior of real wages and unemployment. The statistical model we study is a certain structural error correction model, a so called common trends model, which has become popular in the empirical growth/business cycle literature. The system consists of real output, employment, unemployment and the product real wage and two exogenous stochastic variables, a tax wedge and a currency basket index. Based on quarterly Swedish data (1965-90) we find evidence supporting a short run but not a medium or long run relation.
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| 2. |
- Jacobson, Tor, et al.
(författare)
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Common Trends and Hysteresis in Unemployment
- 1994
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- We examine the sources of labor market fluctuations in the Scandinavian countries using VAR models with common trends. Our primary concerns are the sources of hysteresis in unemployment and possible differences between the economies. A simple economic model is presented to motivate our identifying assumptions. We show how estimates of the theoretical parameters may be obtained from the estimated common trends coefficients. The empirical results suggest that (i) the only common source of hysteresis in the Scandinavian labor markets is shocks to wage setting (or, equivalently, equilibrium unemployment); (ii) transitory labor demand shocks, which are emphasized in the theoretical literature on hysteresis, do not seem to be empirically important.
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| 3. |
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