Impact of labour-market segmentation on identification of parameters in a DSGE Framework
| Authors | |
|---|---|
| Year of publication | 2018 |
| Type | Article in Proceedings |
| Conference | Quantitative Methods in Economics; Multiple Criteria Decision Making XIX |
| MU Faculty or unit | |
| Citation | |
| Web | Conference proceedings |
| Keywords | DSGE; identification issues; labour market segmentation; search and matching frictions |
| Description | In this contribution, I present two small-scale DSGE models of a closed economy with search and matching frictions on the labor market and right-to-manage bargaining process. The first model is the well-known model from (Lubik, 2009). The second model stems from Lubik's work, introducing labor market segmentation to account for different wage setting processes for two groups of workers with a dissimilar level of qualification. The aim of this contribution is to examine how this modification in the second model affects the amount of information needed to properly identify its parameters. At first, I shortly introduce main aspects of both models. Based on the presented calibration, trajectories of main endogenous variables are obtained. Various subsets of these simulated trajectories are then used as observables for estimation of the model parameters to compare to what extent rich information is needed for each model to properly identify its parameters. |
| Related projects: |