A MATCHING MODEL OF CROWDING-OUT AND ON-THE- JOB SEARCH (WITH AN APPLICATION TO SPAIN)

This paper considers a matching model of heterogenous and jobs which includes on-the-job search. High-educated workers transitorily accept unskilled jobs and continue to search for skilled jobs. We study the implications of this model for the unemployment rates of high and low-educated workers, for the share of mismatched workers and wage nequality both within and between skill groups. The model is used to shed light on the Spanish experience following a large educational upgrading since the mid-eighties.

Unemployment and Inflation Persistence in Spain: Are There Phillips Trade-Offs?

This paper studies the dynamic behavior of inflation and unemployment in Spain during the period 1964?1997. In particular, we analyze the implications of high persistence in both unemployment and inflation dynamics for inference regarding the size of Phillips trade-offs and sacrifice ratios in the Spanish economy, in response to a demand shock. To do so we use a Stuctural VAR approach with several identification outlines which give rise to alternative interpretations of the joint unemployment-inflation dynamics. When using a bivariate VAR we cannot reject the existence of a permanent output loss of one-half of one percentage point for each percentage point of permanent disinflation. However, when the VAR is augmented with a third variable, in order to disentangle monetary from non-monetary shocks within the demand class, the evidence favours a lower and marginally permanent trade-off with an output loss of about one-fourth of one percentage point.Publicad

Testing I(1) against I(d) alternatives in the presence of deteministic components

This paper discusses the role of deterministic components in the DGP and in the auxiliary regression model which underlies the implementation of the Fractional Dickey-Fuller (FDF) test for I(1) against I(d) processes with d € [0, 1). This is an important test in many economic applications because I(d) processess with dDeterministic components, Dickey-Fuller test, fractionally Dickey-Fuller test, fractional processes, long memory, trends, unit roots

What is what?: A simple time-domain test of long-memory vs. structural breaks

This paper proposes a new time-domain test of a process being I(d), 0Unit root tests, structural breaks, fractional integration, long memory

LOS NUEVOS FENÓMENOS MIGRATORIOS: RETOS Y POLÍTICAS

En este artículo se presenta una panorámica sobre los recientes movimientos migratorios en el mundo a la luz de la experiencia histórica. Se pone especial énfasis en los efectos de la inmigración sobre los mercados laborales de los países receptores, así como en el papel de la inmigración como solución al problema de la sostenibilidad de los sistemas de pensiones en los países occidentales. Además se ofrecen diferentes cálculos sobre el efecto de la inmigración en el bienestar económico de los países receptores y se discute una amplia gama de políticas de la inmigración conducentes a minimizar los costes y maximizar los beneficios en los países de destinos y de origen.

RESEARCH IN ECONOMICS IN SPAIN: RANKINGS OF INSTITUTIONS AND AUTHORS

In this paper we analyse the research in Economics in Spain during the 1990s considering the contributions of both Spanish and foreign economist who have worked in Spain during that period. To do so, we use different bibliometric indicators in order to elaborate rankings for both institutions and researchers. These rankings can be useful for several potentials users such as: a) Evaluation Agencies and Funding Bodies to help them in grant-allocation decisions; b) Graduate students who whish to choose the right institution to complete their postgraduate education, and c) Young Ph Ds who have entered the academic job market and need information about the research perfomance of different institutions.

Nonlinear monetary policy rules: some new evidence for the US

This paper dreives optimal monetary policy rules in setups where certainty equivalence does not hold because either central bank preferences are not quadratic, and/or the aggregate supply relation is nonlinear. Analytical results show that these features lead to sign and size aymmetries, and nonlinearities in the policy rule. Reduced-form estimates indicate that US monetary policy can be characterized by a nonlinear policy rule after 1983, but not before 1979. This finding is consistent with the view that the Fed`s inflation preferences during the Volcker-Greenspan regime differ considerably from the ones during the Burns-Miller regime

Dual employment protection legislation : a framework for analysis

In many countries, Employment Protection Legislation (EPL) establishes different regulations for certain groups of workers who face more disadvantages in the labor market (young workers, women, unskilled workers, etc.) with the aim of improving their employability. Well-known examples are the introduction of atypical employment contracts (e.g., temporary and determined-duration contracts) which ease firing restrictions for some, but not all, workers. This paper discusses the effects of EPL varying among workers of different skills on the level and composition of unemployment, job flows, productivity and welfare. By using an extension of Mortensen-Pissarides’ (1994) search model where heterogeneous workers compete for the same jobs, we are able to identify several key channels through which changing firing costs for some groups of workers affects hiring and firing of all workers and, hence, may have a different impact on aggregate labor market variables than reducing firing costs across the board. Some analytical and simulation results also show that these effects of differentiated firing costs by workers’ skills may be different depending upon the initial state of the labor market.[resumen de autor

Moving Towards a Single Labor Contract: Transition vs. Steady State

This paper analyzes the optimal design of a single open-ended contract (SOEC) and studies the political economy of moving towards such a SOEC in a dual labour market. We compare two economic environments: one with flexible entry-level jobs and high employment protection at long tenure, and another with a SOEC featuring employment protection levels that increase smoothly with tenure. For illustrative purposes, we specialize the discussion of such choices to Spain. A SOEC has the potential of bringing big time efficiency and welfare gains in a steady-state sense. We also identify winners and losers in the transitional path of such a reform and analyze its political support