Credit Constraints and the Persistence of Unemployment
Nicolas Dromel
- Fonction : Auteur
- PersonId : 913824
Elie Kolakez
- Fonction : Auteur
- PersonId : 860756
Etienne Lehmann
- Fonction : Auteur
- PersonId : 1143790
- IdHAL : elehmann
- ORCID : 0000-0002-2408-9674
Résumé
In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its persistence. For this purpose, we first develop a theoretical model based on the equilibrium matching framework of Mortensen and Pissarides (1999) and Pissarides (2000) where we introduce credit constraints. We show these credit constraints not only increase steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a country panel dataset of 20 OECD countries. Our results suggest that credit market imperfections significantly increase the persistence of unemployment.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Credit Constraints and the Persistence of Unemployment
|
Résumé |
en
In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its persistence. For this purpose, we first develop a theoretical model based on the equilibrium matching framework of Mortensen and Pissarides (1999) and Pissarides (2000) where we introduce credit constraints. We show these credit constraints not only increase steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a country panel dataset of 20 OECD countries. Our results suggest that credit market imperfections significantly increase the persistence of unemployment.
|
Auteur(s) |
Nicolas Dromel
1, 2
, Elie Kolakez
3
, Etienne Lehmann
4, 5
1
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
2
CES -
Centre d'économie de la Sorbonne
( 15080 )
- Maison des Sciences Économiques - 106-112 Boulevard de l'Hôpital - 75647 Paris Cedex 13
- France
3
ERMES -
Equipe de recherche sur les marches, l'emploi et la simulation
( 985 )
- 12, Place du Panthéon 75230 PARIS CEDEX 05
- France
4
CREST -
Centre de Recherche en Économie et Statistique
( 2579 )
- 5, Avenue Henry Le Chatelier
91120 Palaiseau
- France
5
IZA
( 23403 )
- Bonn
- Allemagne
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Langue du document |
Anglais
|
Nom de la revue |
|
Audience |
Internationale
|
Date de publication |
2010
|
Volume |
17
|
Page/Identifiant |
823-834
|
Numéro |
5
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Mots-clés |
en
Credit markets, labour markets, unemployment, credit constraints, search frictions
|
DOI | 10.1016/j.labeco.2010.04.005 |
Loading...