TY  - UNPD
A1  - Gertler, Mark
A1  - Trigari, Antonella
T1  - Unemployment fluctuations with staggered Nash bargaining
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2007,09
N2  - A number of authors have recently emphasized that the conventional model of unemployment dynamics due to Mortensen and Pissarides has difficulty accounting for the relatively volatile behavior of labor market activity over the business cycle. We address this issue by modifying the MP framework to allow for staggered multiperiod wage contracting. What emerges is a tractable relation for wage dynamics that is a natural generalization of the period-by-period Nash bargaining outcome in the conventional formulation. An interesting side-product is the emergence of spillover effects of average wages on the bargaining process. We then show that a reasonable calibration of the model can account well for the cyclical behavior of wages and labor market activity observed in the data. The spillover effects turn out to be important in this respect. JEL Classification: E32, E50, J64
T3  - CFS working paper series - 2007, 09 
KW  - Unemployment
KW  - Labor Market
KW  - Nash Bargaining
KW  - Wage Rigidity
KW  - Arbeitsmarkt
KW  - Arbeitslosigkeit
KW  - Tarifverhandlung
KW  - Lohnstarrheit
Y1  - 2006
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/1612
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-38193
IS  - Version July 2006
ER  -