Search Frictions and the Labor Wedge /
This paper shows that labor market search frictions do not explain fluctuations in the labor wedge per se. However, the introduction of extensive and intensive margin clarifies that measuring the MRS in terms of total hours artificially introduces procyclicality in the MRS. When the MRS is correctly...
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| Format: | Journal |
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
2011.
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| Series: | IMF Working Papers; Working Paper ;
No. 2011/117 |
| Online Access: | Full text available on IMF |