Nonlinear Labor Market Dynamics

by Michael Neugart

Overview

Nonlinear Labor Market Dynamics discusses adjustment processes in labor markets. Contrary to linear-shastic approaches this book is based on a non-linear deterministic framework. It is shown that even textbook-like-models of the labor market can generate long lasting adjustment processes, local instabilities, and chaotic movements, once nonlinear relationships and widely accepted adjustment rules are introduced. Thus, labor market dynamics may have an endogenous component that is governed by a nonlinear deterministic core. Of course, all results are tied to the particular models discussed in this book. Nevertheless, these models imply that by incorporating nonlinear relationships, one may arrive at an explanation of labor market behavior where linear shastic approaches fell. Time series studies for German labor market data support this point of view.

Product Details

ISBN-13:	9783540672791
Publisher:	Springer Berlin Heidelberg
Publication date:	06/08/2000
Series:	Lecture Notes in Economics and Mathematical Systems , #486
Edition description:	Softcover reprint of the original 1st ed. 2000
Pages:	175
Product dimensions:	6.10(w) x 9.25(h) x 0.02(d)

Table of Contents

Content.- 1 Introduction.- 2 Nonlinear and Chaotic Economic Dynamics.- 2.1 Earlier models revisited.- 2.2 Evidence on chaos in economic dynamics.- 3 Nonlinear Labor Supply and Real Wage Adjustment.- 3.1 Beyond a linear and upward sloping labor supply.- 3.2 A bare-bones model and labor market equilibria.- 3.3 Adjustment dynamics.- 3.4 How well is the calibration?.- 3.5 An unstable Phillips curve and other policy implications.- 4 Real Wage Adjustment With A Nonlinear Labor Demand.- 4.1 Production functions, labor costs, and the demand for labor.- 4.2 Discontinuous labor demand and labor market equilibria.- 4.3 Adjustment dynamics.- 4.4 Policy implications.- 5 A Note on Rationality.- 6 Worker Flows and the Occurrence of Endogenous Cycles.- 6.1 The outflow from unemployment.- 6.2 A calibrated version and evidence on worker flows.- 6.3 Is the natural rate a policy trap?.- 7 Employment Dynamics Under Wage Setting.- 7.1 The wage setting curve.- 7.2 A tentative view: employment dynamics in a ‘hire and fire’ economy.- 7.3 Evidence on the parameters of the model.- 7.4 Some consequences from flexible labor markets.- 8 Testing For Chaos in German Labor Market Data.- 8.1 Filtering the data.- 8.2 Testing for nonlinearity and chaos.- 9 Summary and Concluding Remarks.- Figures.- Tables.- References.

Editorial Reviews

In this well written book one may found many interesting topics, facts, thoughts, explanations and more arising in real economic situations.” (Sabir R.Umarov, zbMATH 0962.91051, 2022)

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