Show simple item record

dc.contributor.authorForoni, Claudia
dc.contributor.authorFurlanetto, Francesco
dc.contributor.authorLepetit, Antoine
dc.description.abstractWe propose a new VAR identification scheme that enables us to disentangle labour supply shocks from wage bargaining shocks. identification is achieved by imposing robust signrestrictions that are derived from a New Keynesian model with endogenous labor force participation. According to our analysis on US data over the period 1985-2014, labour supply shocks and wage bargaining shocks are important drivers of output and unemployment both in the short run and in the long run. These results suggest that identification strategies used in estimated New Keynesian models to disentangle labour market shocks may be misguided. We also analyse the behaviour of the labour force participation rate through the lenses of our model. We find that labour supply shocks are the main drivers of the participation rate and account for about half of its decline in the aftermath of the Great Recession.nb_NO
dc.publisherNorges Banknb_NO
dc.relation.ispartofseriesWorking Papers;7/2015
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 Internasjonal*
dc.subjectJEL: C11nb_NO
dc.subjectJEL: C32nb_NO
dc.subjectJEL: E32nb_NO
dc.subjectlabor supply shocksnb_NO
dc.subjectwage mark-up shocksnb_NO
dc.subjectlabor force participationnb_NO
dc.titleLabour Supply Factors and Economic Fluctuationsnb_NO
dc.typeWorking papernb_NO
dc.subject.nsiVDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212nb_NO

Files in this item


This item appears in the following Collection(s)

Show simple item record

Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal