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dc.contributor.authorGaribaldi, Pietroen_US
dc.contributor.authorWasmer, Etienneen_US
dc.date.accessioned2009-01-28T16:12:15Z-
dc.date.available2009-01-28T16:12:15Z-
dc.date.issued2003en_US
dc.identifier.urihttp://hdl.handle.net/10419/20186-
dc.description.abstractThis paper presents a simple model of imperfect labor markets with endogenous labor market participation and home production. We show that a two-sector economy (home and market) implies a three-state labor market when labor market imperfections take the form of an irreversible entry cost incurred by workers. This simple framework brings several results. First, it delivers an expression for the employment rate and as side-products, a measure of the unemployment rate and the size of the labor force. Second, it rationalizes several empirical works on the definition of unemployment in labor force surveys. Third, it derives endogenously all flows between three labor market states. Fourth, a calibration of the model rationalizes differences in employment rates: in the U.S., we find a market productivity premium of +30% and market frictions of -15% compared to France. Finally, the model is a very simple reduced form of search models with which it is fully consistent: the irreversible entry cost is the opportunity cost of search and depends on aggregate conditions.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesIZA Discussion paper series 950en_US
dc.subject.jelJ21en_US
dc.subject.ddc330en_US
dc.subject.keywordemploymenten_US
dc.subject.keywordnon-employmenten_US
dc.subject.keywordlabor market participationen_US
dc.subject.keywordfrictionsen_US
dc.subject.stwErwerbstätigkeiten_US
dc.subject.stwArbeitsmarkttheorieen_US
dc.subject.stwUnvollkommener Markten_US
dc.subject.stwDualer Arbeitsmarkten_US
dc.subject.stwHeimarbeiten_US
dc.subject.stwArbeitsplatzsuchmodellen_US
dc.subject.stwArbeitslosigkeiten_US
dc.subject.stwTheorieen_US
dc.subject.stwVereinigte Staatenen_US
dc.subject.stwFrankreichen_US
dc.titleEquilibrium employment in a model of imperfect labor marketsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn377077828en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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