Cyclical Occupational Choice in a Model with Rational Wage Expectations and Perfect Occupational Mobility

Felderer, Bernhard and Drost, André (March 2000) Cyclical Occupational Choice in a Model with Rational Wage Expectations and Perfect Occupational Mobility. IHS Economics Series 81

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Abstract or Table of Contents

Abstract: In many professional labor markets the number of new workers follows a cyclical time path. This phenomenon is usually explained by means of a cobweb model that is based on the assumptions of myopic wage expectations and occupational immobility. Since both assumptions are questioned by the empirical literature, we develop an alternative model that is based on the assumptions of rational wage expectations and perfect occupational mobility. Depending on the production function, the modelcan generate cycles in the number of workers who enter a professional labor market.;

Item Type: IHS Series
Keywords: 'Occupational choice' 'Rational expectations' 'Occupational mobility' 'Linear dynamics'
Classification Codes (e.g. JEL): I21, J44
Status: Published
Date Deposited: 26 Sep 2014 10:37
Last Modified: 22 Jul 2017 18:05
URI: http://irihs.ihs.ac.at/id/eprint/1256

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