Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20186 
Full metadata record
DC FieldValueLanguage
dc.contributor.authorGaribaldi, Pietroen
dc.contributor.authorWasmer, Etienneen
dc.date.accessioned2009-01-28T16:12:15Z-
dc.date.available2009-01-28T16:12:15Z-
dc.date.issued2003-
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
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x950en
dc.subject.jelJ21en
dc.subject.ddc330en
dc.subject.keywordemploymenten
dc.subject.keywordnon-employmenten
dc.subject.keywordlabor market participationen
dc.subject.keywordfrictionsen
dc.subject.stwErwerbstätigkeiten
dc.subject.stwArbeitsmarkttheorieen
dc.subject.stwUnvollkommener Markten
dc.subject.stwDualer Arbeitsmarkten
dc.subject.stwHeimarbeiten
dc.subject.stwArbeitsplatzsuchmodellen
dc.subject.stwArbeitslosigkeiten
dc.subject.stwTheorieen
dc.subject.stwVereinigte Staatenen
dc.subject.stwFrankreichen
dc.titleEquilibrium employment in a model of imperfect labor markets-
dc.typeWorking Paperen
dc.identifier.ppn377077828en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

Files in This Item:
File
Size
933.06 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.