Mortensen, Dale T and Pissarides, Christopher (1993) Job creation and job destruction in the theory of unemployment. CEP discussion paper; CEPDP0110, 110. Centre for Economic Performance, London School of Economics and Political Science, London, UK.Full text not available from this repository.
n this paper we model a job-specific shock process in the matching model of unemployment with non-cooperative wage behaviour. We obtain endogenous job creation and job destruction processes and study their properties. We show that an aggregate shock induces negative correlation between job creation and job destruction whereas a dispersion shock induces positive correlations. The job destruction process is shown to have more volatile dynamics than the job creation process. In simulations we show that an aggregate shock process proxies reasonably well the cyclical behaviour of job creation and job destruction in the United States.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 1993 the authors|
|Library of Congress subject classification:||H Social Sciences > HD Industries. Land use. Labor|
|Sets:||Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
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