Cheremukhin, Anton A.; Restrepo-Echavarria, Paulina - In: European Economic Review 68 (2014) C, pp. 71-92
We use a search and matching model to decompose the labor wedge into three classes of labor market frictions and … evaluate their role for the labor wedge and unemployment. We find that there is an asymmetric effect of labor market frictions … on the labor wedge and unemployment. While the wedge is to a large extent explained by changes in matching efficiency …