Seminar Series “Macroeconomics and Labor Markets” on 24 October 2023

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PantherMedia / Bernd Schmidt

We are pleased to invite you to the seminar series on “Macroeconomics and Labor Markets“ organized by the Chair of Macroeconomics at the Friedrich-Alexander University Erlangen-Nuremberg, Prof. Merkl, the Chair of Global Governance and International Trade at the Friedrich-Alexander University Erlangen-Nuremberg, Prof. Moser, and the Competence Field Macroeconomics of the Institute for Employment Research (IAB). Researchers of both institutions, as well as national and international guests, present their current work at the intersection of labor- and macroeconomics.

The next seminar will be held on Tuesday, October 24, 12 noon to 1.30 pm (German time) via Zoom.

Joanna Tyrowicz (University of Warsaw) will talk about

“The European Unemployment Puzzle: Implications from Population Aging” (joint work with Krzysztof Makarski and Sylwia Radomska).


We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the considerable extent to which demographic changes over the last 30 years contribute to the decline of unemployment rate. Our findings have important policy implications given the expected aging of the working population in Europe. Furthermore, lowering inflation volatility is less costly in terms of higher unemployment volatility. It suggests that optimal monetary policy is more hawkish in the older society. Our results hint also at a partial reversal of the European-US unemployment puzzle due to the fact that in the US the share of young workers is expected to remain robust.