How Would a Monopsony Employer Hurt Labor? A Simple Dynamic Model

Description

This is ipython code for Section 5 of the paper. Sources of data from this replication file: (1) Monthly job finding rate and monthly job separation rate for OECD country from Elsby et al. (2013). (2) Alternative estimate of U.S. steady unemployment rate from Zhou (2019) (3) Fraction of college graduates in U.S. labor market from Wolcott (2021) Reference: - Elsby, Michael; Hobijn, Bart; Sahin, Aysegul 2013. Unemployment Dynamics in the OECD, Review of Economics and Statistics, 95(2), 530-548. - Wolcott, Erin, 2021. Employment inequality: Why do the low-skilled work less now? Journal of Monetary Economics, 118, 161-177. - Zhou, Ying, Search and (In-)Elastic Rest Unemployment: An Analytical Framework, mimeo, 2019.

Steps to reproduce

Directly run the ipynb.

Institutions

• Chinese University of Hong Kong

  Hong Kong
• City University of Hong Kong

  Hong Kong

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