Erosa, Andres; Fuster, Luisa; Kambourov, Gueorgui - University of Toronto, Department of Economics - 2011
on micro evidence, and is used to study the aggregate labor supply responses to changes in the economic environment. We … find that the aggregate labor supply elasticity to a transitory wage shock is 1.27, with the extensive margin accounting … find that the aggregate labor supply responses in the model are similar to those actually observed in Iceland. …