Credit, Vacancies and Unemployment Fluctuations
By Nicolas Petrosky-Nadeau. 2014
143 citations recorded by the source corpus.
Propagation in equilibrium models of search unemployment is altered when vacancy costs require some external financing on frictional credit markets. The easing of financing constraints during an expansion as firms accumulate net worth reduces the opportunity cost for resources allocated to job creation. The dynamics of market tightness are affected by (i) a cost channel, increasing the incentive to recruit for a given benefit from a new hire, and (ii) a wage channel, whereby firms' improved bargaining position limits the upward pressure of market tightness on wages. Agency related credit frictions endogenously generate persistence in the dynamics of labor-market tightness, and have a moderate endogenous effect on amplification.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/cb042ad46cc24d55ca7ae403040c3eab1736113d
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In Economics and Econometrics
Citations in the corpus
- Firing the wrong workers: Financing constraints and labor misallocation (2019, background): “…Midrigan and Xu, 2014) and on the literature on financial frictions, the dynamics of hiring and firing, and employment fluctuations (among others, see Wasmer and Weil, 2004; Monacelli, Quadrini, and Trigari, 2011; Petrosky-Nadeau, 2014; Petrosky-Nadeau and Wasmer 2015; Caggese and Perez, 2016).”