University of Bath

The effects of productivity and job matching shocks in a changing world

Professor Christopher Martin will discuss his paper on Labour Economics, jointly written with Dr Michael Ellington and Dr Bingsong Wang.

13 Jun 20184.15pm
13 Jun 20185.45pm

The authors used a second generation Bayesian time-varying parameter VAR model with stochastic volatility, combined with a simple search frictions model of the labour market, to explore the changing relationships between output, unemployment, vacancies and the real wage in the US labour market for 1970-2017.

In their research, they discovered marked changes in their estimated relationships, suggesting that the key mechanisms that drive the labour market vary across the business cycle and across time.