Can the labor market search model explain the fluctuations of allocations of time?

Effects of reduction in working hours on a model with job creation and job destruction

“…In short, these results are similar to those obtained in other studies in which simple models of general equilibrium are developed, such as Puch and Licandro (1997), Merz (1995) and Tripier (2003).…”

“…Tripier (2003) observes a direct relation between these two variables when confronted with a positive production shock. Greater production not only brings about an increase in the offer of vacancies, but also in the active population.…”

“…The cyclical properties of unemployment are not perfectly aligned to the behaviour observed in real economies. This defect of models of job creation and destruction has been documented in literature on the subject matter, amongst others by Tripier (2003).…”

“…This is attributable to the difference between the definition of these parameters in the model proposed in this study and that of Tripier (2003): A common parameter is that of capital depreciation, for which the value of 0.022 used by Merz (1995) . This is the same value as that used in the studies of Cole and Rogerson (1999) and Tripier (2003).…”

“…To date, most theoretical models on trends and variation in employment and unemployment have confined themselves to establishing a dichotomy between the employed and the unemployed. In this case, inactivity is added for the simple reason that the behaviour of the inactive population in relation to economic cycles does not correspond to that of the unemployed population (Tripier, 2003). Merz (1995), one of the pioneers in the use of the category of inactivity, brings the inactive into focus by defining the variable of "search effort", such that the lower the level of effort, the higher the proportion of inactive people.…”