A search model of the labor market is augmented to include commuting time to work. The theory posits that wages are … impact of commute time on job acceptance decisions. We also use the theory to calculate the bargaining power of workers which …

Unemployment may depend on equilibrium in other markets than the labor markets. This paper adresses this old idea by … introducing search frictions on several markets: in a model of credit and labor market imperfections as in Wasmer and Weil (2004 …

follow this line of research to the labor literature concerned by the volatility of labor market outcomes to productivity … shocks initiated by Shimer (2005): in an economy with search on credit and labor markets, a financial multiplier raises the … elasticity of labor market tightness to productivity shocks. This multiplier increases with total financial costs and is …

Labor market frictions are not the only possible factor responsible for high unemployment. Credit market imperfections …. This paper shows that labor and credit market imperfections interact in a complementary way - which may explain why … European and US unemployment differ so much when labor markets have become more similar at the margin in Europe and the US. To …

In search of a macroeconomic theory of wage determination, the agnostic reader should be puzzled by the apparent … contradiction between two influential theories. On one hand, in the standard search-matching theory with wage bargaining, hiring … cost and constant returns of labor, the bargaining power of employees allows them to get rents and gives rise either to …

labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching … labor force and rises the share of attached workers. Finally, our theory suggests that contrary to two-state models … frictions and labor market participation margins. The paper firstly rationalizes and quantitatively accounts for the existence …