Several analysts claim that firms have been using more flexible work arrangements in order to contain the costly adjustment of labor to changes in economic conditions. In particular, temporary help supply (THS) employment has increased dramatically in the last ten years. However, there is only...

The Bureau of Labor Statistics has reported an extraordinary increase in temporary help supply (THS) employment during the late 1980s and the 1990s. However, little is known about the venues where these THS employees actually work. Our estimates indicate that the proportion of THS employees in...

This paper develops a model of inflation inertia based on optimizing forward looking staggered price setting in a small open economy. Unlike in current models of sticky prices, transitions to a lower steady state inflation rate take time even if they are fully credible, and they are associated...