Search Frictions, Efficiency Wages and Equilibrium Unemployment
Keyword(s):
This paper explores the decomposition of equilibrium unemployment into involuntary and frictional components using a model that combines efficiency wages with search and matching frictions in the labour market. In deriving our results we generalise the celebrated Solow Condition, expressing the wage as the sum of a pure efficiency wage component and a component that reflects search frictions. Using standard values of calibrated parameters, we find that the bulk of unemployment is involuntary
2008 ◽
Vol 55
(5)
◽
pp. 936-956
◽
2017 ◽
Vol 23
(4)
◽
pp. 1313-1339
◽
2016 ◽
Vol 52
(7)
◽
pp. 1606-1626
◽
Keyword(s):
2018 ◽
Vol 11
(6)
◽
pp. 567
Keyword(s):
2008 ◽
Vol 55
(5)
◽
pp. 957-960
◽
2012 ◽
Vol 36
(4)
◽
pp. 523-535
◽
2018 ◽
Vol 11
(6)
◽
pp. 1
Keyword(s):