Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/95300
Authors: 
Colciago, Andrea
Rossi, Lorenza
Year of Publication: 
2011
Series/Report no.: 
Quaderni di Dipartimento 139
Abstract: 
We propose a flexible prices model where endogenous market structures and search and matching frictions in the labor market interact endogenously. The interplay between firms endogenous entry, strategic interactions among producers and labor market frictions represents a strong amplification channel of technology shocks on labor market variables, and helps addressing the unemployment-volatility puzzle. Consistently with U.S. evidence, new firms create a large fraction of new jobs and grow faster than more mature firms, net firms’ entry is procyclical and the price mark up is countercyclical.
Subjects: 
Endogenous Market Structures
Firms’ Entry
Search and Matching Frictions
JEL: 
E24
E32
L11
Document Type: 
Working Paper

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