Tab. 1
Parameters in Section 3.
| α | Parameter in production function | 0.64 |
| β | Discount factor | 0.985 |
| γ | Elasticity of wage with respect to employment rate | 1.0 |
| δ | Depreciation rate | 0.0125 |
| θ | Wage at zero unemployment | 0.35 |
| τ | Adjustment cost | 0.0 or 0.1 |
| σ | Turnover rate | 0.5 |
| s | Saving rate | 0.30 |
| N | Labour force | 110.0 |
Fig. 1
Employment fluctuations with τ = 0: (a) New hiring and (b) Total employment.
Fig. 2
Employment fluctuations with τ = 0.1 : (a) New hiring and (b) Total employment.
Fig. 3
Employment fluctuations without fixed-term contracts: (a) New hiring and (b) Total employment.
Tab. 2
Parameters in Section 4.1.
| α | Parameter in production function | 0.64 |
| β | Discount factor | 0.985 |
| γ | Elasticity of wage with respect to employment rate | 1.0 |
| δ | Depreciation rate | 0.0125 |
| θ | Wage at zero unemployment | 0.35, 1.0, 1.5, or 2.0 |
| τ | Adjustment cost | 0.1 |
| s | Saving rate | 0.30 |
| N | Labour force | 110.0 |
Figure 4
Union influence and employment fluctuations: (a) θ = 0.35 and (b) θ = 2.0.
Tab. 3
Parameters in Section 4.2.
| α | Parameter in production function | 0.64 |
| β | Discount factor | 0.985 |
| γ | Elasticity of wage with respect to employment rate | 1.0, 2.0, 3.0, or 4.0 |
| δ | Depreciation rate | 0.0125 |
| θ | Wage at zero unemployment | 0.35 |
| τ | Adjustment cost | 0.1 |
| s | Saving rate | 0.30 |
| N | Labour force | 110.0 |
Fig. 5
Elasticity of wage with respect to employment rate and employment fluctuations: (a) γ = 1.0 and (b) γ = 4.0.