Template-Type: ReDIF-Paper 1.0
Author-Name: Michael Donadelli
Author-X-Name-First: Michael
Author-X-Name-Last: Donadelli
Author-Email: donadelli@safe.uni-frankfurt.de
Author-Workplace-Name: Goethe University Frankfurt
Author-Name: Patrick Grüning
Author-X-Name-First: Patrick
Author-X-Name-Last: Grüning
Author-Email: pgruening@lb.lt
Author-Workplace-Name: Bank of Lithuania

Title: Labor market dynamics, endogenous growth, and asset prices
Abstract: We extend the endogenous growth model of Kung and Schmid (2015) by adding endogenous labor dynamics and wage rigidities. This leads to an increase of about 250 basis points in risk premia. Additionally, it brings labor market quantities much closer to their empirical counterparts. In particular, wage rigidities generate an increase of around 60 basis points in labor growth volatility.

Classification-JEL: E22, G12, O30, O41
Keywords: 

Length: 13 pages
Number: 10
Note:
Creation-date: 2016-01-23
Price: Free
Publication-Status: 
File-URL: https://www.lb.lt/uploads/publications/docs/op_10.pdf
File-Format: Application/PDF
File-Function: Full text
Handle: RePEc:lie:opaper: 10