Publication Type

PhD Dissertation

Publication Date

9-2017

Abstract

A major perspective in explaining involuntary unemployment is to recognize the existence of job market frictions, in particular, job market matching frictions. The workhorse model employed is the Diamond- Mortensen-Pissarides (DMP) model. Similar to the labor market, the market for physical capital markets exhibits the same characteristics with a pool of unsold inventory as well as used capital that is sold and reallocated to other terms. Nevertheless, past research has highlighted several issues of the DMP model in matching the characteristics of the labor market. In a model enriched with labor participation flows and job separation, I evaluate the model performance in resolving the issues in the Krause and Lubik (2007) model in the presence of nominal price rigidity. The model resolves the failure in generating the Beveridge curve in the presence of endogenous job destruction. Separately, in a RBC model with frictional labor and physical capital market and endogenous labor participation, I evaluate the model prediction in a context where labor disutility is procyclical under both contemporaneous shocks and news shocks.

Keywords

labor market, search

Degree Awarded

PhD in Economics

Discipline

Behavioral Economics | Economics | Work, Economy and Organizations

Supervisor(s)

HOON, Hian Teck

Publication

Singapore Management University

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Singapore Management University

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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