Bodart, Vincent De Walque, Gregory Pierrard, Olivier Sneessens, Henri R. Wouters, Raf
Year of Publication:
IZA Discussion Papers 2528
In this paper, we propose a search and matching model with nominal stickiness à la Calvo in the wage bargaining. We analyze the properties of the model, first, in the context of a typical real business cycle model driven by stochastic productivity shocks and second, in a fully specified monetary DSGE model with various real and nominal rigidities and multiple shocks. The model generates realistic statistics for the important labor market variables.