Garibaldi, Pietro; Wasmer, Etienne - Institute for the Study of Labor (IZA) - 2003
This 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 … of the labor force. Second, it rationalizes several empirical works on the definition of unemployment in labor force …