Gertler, Mark (contributor); Trigari, Antonella (contributor) - 2006
behavior of wages and
labor market activity observed in the data. The spillover effects turn out to be important in this …”) cannot account for the
key cyclical movements in labor market activity, at least for standard calibrations of parameters.
The ….33,andρ
a
=0.95
1
3
. Note in contrast to the
frictionless labor market model, the term 1−α does not necessarily correspond to …