Wasmer, Etienne; Weil, Philippe - C.E.P.R. Discussion Papers - 2002
Labour market frictions are not the only possible source of high unemployment. Credit market imperfections, driven by … tractable macroeconomic model, we treat credit and labour market imperfections in a symmetrical way. Accordingly, we introduce … frictions, in the spirit of Diamond (1990). These imperfections mirror job search frictions in the labour market. We study the …