Job Ladder and Business Cycles

Job Ladder and Business Cycles
Author: Felipe Alves
Publisher:
Total Pages: 44
Release: 2022
Genre: Business cycles
ISBN:

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"I build a Heterogeneous Agents New Keynesian model with rich labor market dynamics. Workers search both off- and on-the-job, giving rise to a job ladder, where employed workers slowly move toward more productive and better paying jobs through job-to-job transitions, while negative shocks occasionally throw them back into unemployment. The state of the economy includes the distribution of workers over wealth, labor earnings and match productivities. In the wake of an adverse financial shock calibrated to mimic the US Great Recession unemployment dynamics, firms reduce hiring, causing the job ladder to all but "stop working." This leaves wages stagnant for several years, triggering a sharp contraction and slow recovery in consumption and output. On the supply side, the slow pace in worker turnover leaves workers stuck at the bottom of the ladder, effectively cutting labor productivity growth in the aggregate. The interaction between weak demand and low productivity leads to inflation dynamics that resemble the missing disinflation of that period"--Abstract, page ii.

The Cyclical Job Ladder

The Cyclical Job Ladder
Author: Giuseppe Moscarini
Publisher:
Total Pages: 0
Release: 2018
Genre:
ISBN:

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Many theories of labor market turnover generate a job ladder. Due to search frictions, workers earn rents from employment. All workers agree on which jobs are, in this sense, more desirable and slowly climb the job ladder through job-to-job quits. Occasionally, negative shocks throw them off the ladder and back into unemployment. We review a recent body of theory and empirical evidence on labor market turnover through the lens of the job ladder. We focus on the critical role that the job ladder plays in transmitting aggregate shocks, through the pace and direction of employment reallocation, to economic activity and wages and in shaping business cycles more generally. The main evidence concerns worker transitions, both through nonemployment and from job to job, between firms of different sizes, ages, productivity levels, and wage premiums, as well as the resulting earnings growth. Poaching by firms up the ladder is the main engine of reallocation, which shuts down in recessions.

On the Job Search and Business Cycles

On the Job Search and Business Cycles
Author: Giuseppe Moscarini
Publisher:
Total Pages: 57
Release: 2018
Genre:
ISBN:

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We propose a highly tractable way of analyzing business cycles in an environment with random job search both off- and and on-the-job (OJS). Ex post heterogeneity in productivity across jobs generates a job ladder. Firms Bertrand-compete for employed workers, as in the Sequential Auctions protocol of Postel-Vinay and Robin (2002).We identify three channels through which OJS amplifies and propagates aggregate shocks: (i) a higher estimated elasticity of the matching function, when recognizing that at least half of all hires are from other employers; (ii) the differential returns to hiring employed and unemployed job applicants, whose proportions naturally vary over the business cycle; (iii) within employment, the slow reallocation of workers through OJS across rungs of the job ladder, generating endogenous, slowly evolving opportunities for further poaching, which feed back on job creation incentives.Endogenous job destruction, due to either aggregate or idiosyncratic shocks, is countercyclical and thus raises the cyclical volatility of unemployment, closer to its empirical value; but it also stimulates job creation in recessions, to take advantage of the fresh batch of unemployed, and tilts the Beveridge curve up. OJS corrects this tendency and restores a vacancy-unemployment trade-off more in line with empirical observations.

The Job Ladder

The Job Ladder
Author: Gary S. Fields
Publisher: Oxford University Press
Total Pages: 423
Release: 2023-03-09
Genre: Social Science
ISBN: 0192692909

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This is an open access title available under the terms of a CC BY-NC-SA 3.0 IGO licence. It is free to read at Oxford Scholarship Online and offered as a free PDF download from OUP and selected open access locations. Based on studies of a range of countries in the Global South, this book examines heterogeneity within informal work by applying a common conceptual framework and empirical methodology. The country studies use panel data to study the dynamics of worker transitions between formal and heterogeneous informal work and present a comparative perspective across developing countries in Asia, Latin America, Sub-Saharan Africa, and North Africa and the Middle East. Each study provides a nuanced view of informality, dividing workers into six work statuses: formal wage-employees, upper-tier informal wage-employees, lower-tier informal wage employees, formal self-employed, and upper-tier informal self-employed. Based on this common conceptual framework, the country studies examine the distribution of workers across each of these work statuses, and document transition patterns across different formality and work statuses. The panel data analysed in each country study provide a basis for making statements about labour market transitions that are not warranted when using comparable cross-sections. The studies also examine the individual- and household-level characteristics associated with workers in each work status. Using these characteristics, each study constructs a 'job ladder' that ranks each work status, and then examines the characteristics of workers that are associated with transitions up (and down) the job ladder.

Mastering the Business Cycle

Mastering the Business Cycle
Author: Albert N. Link
Publisher: Irwin Professional Publishing
Total Pages: 210
Release: 1991
Genre: Business & Economics
ISBN:

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Forever Employable

Forever Employable
Author: Jeff Gothelf
Publisher:
Total Pages: 106
Release: 2020-06-15
Genre:
ISBN:

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After spending the first 10 years of his career climbing the corporate ladder, Jeff Gothelf decided to change his approach to staying employed. Instead of looking for jobs, they would find him. Jeff spent the next 15 years building his personal brand to become a recognized expert, consultant, author and public speaker. In this highly tactical, practical book, Jeff Gothelf shares the tips, tricks, techniques and learnings that helped him become Forever Employable. Using the timeline from his own career and anecdotes, stories and case studies from other successful recognized experts Jeff provides a step-by-step guide to building a foundation based on your current expertise ensuring that no matter what happens in your industry you'll remain Forever Employable. This handy guide to your career and professional development shows you how to create your own content, use it to build your expertise and credentials and then scale it to build a continuous stream of income, interaction and community. As organizations seek to reduce costs, automate tasks and increase efficiency, how do you ensure you don't end up outside of those plans? Forever Employable shows you how so that you're always ready for the next step in your career. Reduce your stress, build your community, monetize your platform -- that's being Forever Employable.

A Job Ladder Model of Firm, Worker, and Earnings Dynamics

A Job Ladder Model of Firm, Worker, and Earnings Dynamics
Author: Sean McCrary
Publisher:
Total Pages: 0
Release: 2022
Genre:
ISBN:

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This paper proposes a multiworker firm model with on-the-job search and decreasing returns-to-scale production. A coalition bargaining solution between a firm and its incumbent workers yields tractability, results in privately efficient recruiting decisions, and delivers an explicit expression for the wage function. The paper shows how a stylized calibrated version of the model can replicate untargeted empirical facts on the cross-sectional dispersion in firm growth and on measured elasticities of separation rates, quitting rates and vacancy duration with respect to wages. It can also replicate observed net poaching rates by firm size and firm wage, therefore rationalizing the absence of firm size ladders and the presence of wage ladders. In terms of business cycles, the model can replicate the cyclical properties of job flows and worker flows.

Human Capital Over the Life Cycle

Human Capital Over the Life Cycle
Author: Catherine Sofer
Publisher: Edward Elgar Publishing
Total Pages: 210
Release: 2004-01-01
Genre: Business & Economics
ISBN: 1843769751

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. . . I am convinced that it should occupy a high position on the desk of policymakers. . . This book constitutes a good state-of-the-art study in this field and paves the way for further research in this direction. Marie-Claire Villeval, Economic Record This attractive publication is carried out as a clear attempt to gain access to a wider audience, relaxing formal and technical details, which makes the lecture easier. . . An international comparison of literature or educational and labour experiences is provided in every contribution in the book, helping to obtain a wider perspective of the problems tackled. Carmen García and Julio López, Education Economics This book makes a novel contribution to economics of education in several key respects. It highlights a broad number of crucial factors over the individual s life cycle that underlie inequalities in education and in the labour market. . . It is amazing how limited our knowledge is about these interactions despite their high priority in national as well as EU-level policy-making. This is a timely book concerned with topics of high policy relevance. Moreover, the authors have well succeeded in their attempt to write "in a style that makes this work accessible to a wider audience", using the editor s words. It is most important that academics as well as politicians are made aware of the considerable knowledge gaps that still prevail in our understanding of the role of education and training for the individual s success or failure in school and in working life. Rita Asplund, The Research Institute of the Finnish Economy (ETLA), Finland In the last decade, changes occurring in the demand for skills have produced significant effect on the functioning of labour markets in Europe and elsewhere. The challenge posed by a knowledge based society for sustained growth has been at the centre of the European strategy for employment and has important implications for the design of labour market policies. This book brings together a wide range of contributions written by leading experts on key issues such as: schooling systems, transition from school to work and lifelong learning, thereby providing an essential reference for both researchers and policymakers. Claudio Lucifora, Università Cattolica, Italy Human Capital Over the Life Cycle synthesises comparative research on the processes of human capital formation in the areas of education and training in Europe, in relation to the labour market. The book proposes that one of the most important challenges faced by Europe today is to understand the link between education and training on the one hand and economic and social inequality on the other. The authors focus the analysis on three main aspects of the links between education and social inequality: educational inequality, differences in access to labour markets and differences in lifelong earnings and training. Almost all the stages in the life cycle are tracked from early childhood to stages late in the working life: firstly the characteristics and effects of schooling systems, then the transitions from school to work and, finally, human capital and the working career. Academics and researchers of European studies, labour economics and the economics of education will all find this novel and analytically sound book of interest, as will sociologists and policymakers in Europe.