Nonlinear Labor Market Dynamics

Content.- 1 Introduction.- 2 Nonlinear and Chaotic Economic Dynamics.- 2.1 Earlier models revisited.- 2.2 Evidence on chaos in economic dynamics.- 3 Nonlinear Labor Supply and Real Wage Adjustment.- 3.1 Beyond a linear and upward sloping labor supply.- 3.2 A bare-bones model and labor market equilibria.- 3.3 Adjustment dynamics.- 3.4 How well is the calibration?.- 3.5 An unstable Phillips curve and other policy implications.- 4 Real Wage Adjustment With A Nonlinear Labor Demand.- 4.1 Production functions, labor costs, and the demand for labor.- 4.2 Discontinuous labor demand and labor market equilibria.- 4.3 Adjustment dynamics.- 4.4 Policy implications.- 5 A Note on Rationality.- 6 Worker Flows and the Occurrence of Endogenous Cycles.- 6.1 The outflow from unemployment.- 6.2 A calibrated version and evidence on worker flows.- 6.3 Is the natural rate a policy trap?.- 7 Employment Dynamics Under Wage Setting.- 7.1 The wage setting curve.- 7.2 A tentative view: employment dynamics in a 'hire and fire' economy.- 7.3 Evidence on the parameters of the model.- 7.4 Some consequences from flexible labor markets.- 8 Testing For Chaos in German Labor Market Data.- 8.1 Filtering the data.- 8.2 Testing for nonlinearity and chaos.- 9 Summary and Concluding Remarks.- Figures.- Tables.- References.

"In this well written book one may found many interesting topics, facts, thoughts, explanations and more arising in real economic situations." (Sabir R.Umarov, zbMATH 0962.91051, 2022)