Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58585
Authors: 
Haefke, Christian
Reiter, Michael
Year of Publication: 
2011
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6039
Abstract: 
In this paper we use information on the cyclical variation of labor market participation to learn about the aggregate labor supply elasticity. For this purpose, we extend the standard labor market matching model to allow for endogenous participation. A model that is calibrated to replicate the variability of unemployment and participation, and the negative correlation of unemployment and GDP, implies an aggregate labor supply elasticity along the extensive margin of around 0.3 for men and 0.5 for women. This is in line with recent micro-econometric estimates.
Subjects: 
matching models
labor market participation
labor supply elasticity
JEL: 
E24
E32
J21
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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