The Vanishing Procyclicality of Labour Productivity

Jordi GalÌ and Thijs van Rens
Additional contact information
Jordi GalÌ: CREI, UPF and Barcelona GSE

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: We document two changes in postwar US macroeconomic dynamics: the procyclicality of labour productivity vanished, and the relative volatility of employment rose. We propose an explanation for these changes that is based on reduced hiring frictions due to improvements in information about the quality of job matches and the resulting decline in turnover. We develop a simple model with hiring frictions and variable e§ort to illustrate the mechanisms underlying our explanation. We show that our model qualitatively and quantitatively matches the observed changes in business cycle dynamics

Keywords: labour hoarding, hiring frictions, e§ort choice JEL Classification: E24; E32 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-dge, nep-mac and nep-opm
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://warwick.ac.uk/fac/soc/economics/research/c ... tions/wp477.2020.pdf

Related works:
Journal Article: The Vanishing Procyclicality of Labour Productivity (2021)
Working Paper: The Vanishing Procyclicality of Labour Productivity (2020)
Working Paper: The Vanishing Procyclicality of Labor Productivity (2015)
Working Paper: The Vanishing Procyclicality of Labor Productivity (2014)
Working Paper: The Vanishing Procyclicality of Labor Productivity (2014)
Working Paper: The Vanishing Procyclicality of Labor Productivity (2014)
Working Paper: The Vanishing Procyclicality of Labor Productivity (2010)
Working Paper: The Vanishing Procyclicality of Labor Productivity (2010)
Working Paper: The vanishing procyclicality of labor productivity (2010)
Working Paper: The vanishing procyclicality of labor productivity (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:477

Access Statistics for this paper

More papers in CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE) Contact information at EDIRC.
Bibliographic data for series maintained by Jane Snape ().