In this paper we propose a new macro-micro econometric framework which incorporates both aggregate labour demand and supply, and the labour market flows which determine the steady-state unemployment rate. Thus, we can simulate either demand or supply shocks and therefore assess their impacts on labour demand and supply, and also on unemployment and labour market flows. This enables us to pinpoint the dynamic effects of such shocks.
|Number of pages||26|
|Journal||Rivista Internazionale di Scienze Sociali|
|Publication status||Published - 2013|
- labour market econometric model
- labour market flows
- steady-state unemployment rate