Capital mobility and labor market volatility

• Type: Article in International Scientific Journal
• Date: 2010

Authors

Cenesiz, MA (Author) FEP; Pierdzioch, C (Author) Other

Journal

Title: International Economics and Economic Policy

Vol. 7

Pages: 391-409

ISSN: 1612-4804

Publisher: Springer Nature

Indexing

Scopus - 2 Citations

Other information

Authenticus ID: P-007-VY4

DOI: 10.1007/s10368-010-0146-z

Abstract (EN): We used a dynamic two-country optimizing model featuring efficiency wages to analyze the implications of capital mobility for labor market volatility. Capital mobility magnifies the short-run effects of productivity shocks and monetary shocks on employment and the real wage, but dampens the medium-run effects. The overall effects of capital mobility on the volatility and the cyclical properties of employment and the real wage are moderate. © 2010 Springer-Verlag.

Language: English

Type (Professor's evaluation): Scientific