Newell, Andrew and Symons, James (1991) Endogenous separations in a matching model. CEP discussion paper, 35. Centre for Economic Performance, London School of Economics and Political Science, London, UK.Full text not available from this repository.
The paper develops a model in which employment is an enduring rent-sharing relationship. In each period rents are subject to a transient disturbance, and the parties weigh the future stream of benefits against current dis-benefits. The analysis suggests a strong correlation between real interest rates and aggregate unemployment because high real interest rates makes the employment relationship more fragile. This correlation is demonstrated for a number of time series of aggregate national data.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 1991 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)
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