The demand for youth
Subtitle: implications for the hours volatility puzzle
By: Nir Jaimovich, Seth Pruitt, and Henry E. Siu.
Contributors: Pruitt, Seth.; Siu, Henry E.
Series: International finance discussion papers -- no. 964; International finance discussion papers (Online) -- no. 964.
Publisher: Federal Reserve Board
Published: 2009
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "The employment and hours worked of young individuals fluctuate much more over the business cycle than those of prime-aged individuals.  Understanding the mechanism underlying this observation is key to explaining the volatility of aggregate hours over the cycle.  We argue that the joint behavior of age-specific hours and wages in the U.S.  data point to differences in the cyclical characteristics of labor demand.  To articulate this view, we consider a production technology displaying capital-experience complementarity.  We estimate the key parameters governing the degree of complementarity and show that the model can account for the behavior of age-specific hours and wages while generating a series of aggregate hours that is nearly as volatile as output"--Federal Reserve Board web site.
Notes: Title from PDF file as viewed on 6/22/2009.

Includes bibliographical references.

Also available in print.

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Mode of access: World Wide Web.