Basu, Kaushik; Genicot, Garance; Stiglitz, Joseph E. - Center for Analytic Economics, Department of Economics - 2000
If people's labor-supply decisions are taken at the level of the household, it is natural to expect aggregate demand and unemployment to influence the supply curve of labor. An increase in unemployment could prompt households to send more workers out in search of work to insure against the risk...
