Boz, Emine; Durdu, Ceyhun Bora; Li, Nan - Federal Reserve Board (Board of Governors of the … - 2009
This paper shows that labor markets of emerging economies are characterized by large fluctuations in wages while employment fluctuations are subdued. We find that a real business cycle model of a small open economy that embeds a Mortensen-Pissarides type of search-matching frictions can account...