TY  - SER
AU  - Rujin, Svetlana
TI  - Labor market institutions and technology-induced labor adjustment along the extensive and intensive margins
SN  - 0164-0704
PB  - Journal of Macroeconomics
KW  -  Labor market institutions
KW  -  Structural identification
KW  -  Technology shocks
KW  - Business cycle fluctuations
KW  - Economics
N2  - What is the composition of total hours response to a technology shock in countries with different labor market institutions in terms of extensive and intensive margin movements? To answer this question, I identify technology shocks using structural vector autoregressions (SVARs) and decompose the responses of hours into adjustments along the extensive and intensive margins. I compare the adjustments along the two margins between groups of countries with strict and flexible labor market institutions. I find that both margins play a large role in accommodating technology shocks, with adjustments along the intensive margin being more important. Furthermore, countries with flexible labor market institutions display a larger drop in employment, whereas the results for the intensive margin are mixed. Finally, the cross-country differences in fluctuations along the two margins can be linked to the strictness of institutions that target quantity and price adjustments in the labor market
UR  - https://www.sciencedirect.com/science/article/pii/S016407042300071X
ER  -