ΕΚΔΗΛΩΣΕΙΣ

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Research Seminar Series in Economic Sciences, 2021-2022

Speaker: Ioannis Kospentaris, Assistant Professor of Economics School of Business, Virginia Commonwealth University

Webpage:https://sites.google.com/site/ioanniskospentaris/

Title: Accounting for Unemployment Differences in OECD (coauthored with Athanasios Geromichalos)

Date & Time: Wednesday, June 1st, 2022, 19:00 - 20:30  

Webex Link:https://uoa.webex.com/uoa/j.php?MTID=m6f2d44769f2375bf2090852c432d9ac6

Url: http://www.econ.uoa.gr/ereynhtika-seminaria-research-seminars.html

Abstract:  There are significant differences in the unemployment rates between OECD countries. We use the standard Diamond-Mortensen-Pissarides (DMP) model of the labor market as an accounting device to understand the channels behind these differences. The main determinants of unemployment in the DMP model are: labor productivity, UI benefits, workers' bargaining power, staffing costs, and labor market frictions. We parameterize these forces from the data of different OECD countries and standard values from the literature. We use the job creation equation of the model to predict unemployment rates. We find that the standard DMP model accounts for a relatively small fraction of the observed variation in unemployment rates. The performance of the model improves substantially when we take into account worker heterogeneity and public sector hiring.

Organizers: Dimitris Kenourgios, Professor

                      George Dotsis, Assoc. Professor

                      Frago Kourandi, Assist. Professor