We introduce endogenous labour supply decisions with an extensive and intensive margin in a spatial computational general equilibrium model. We show that endogenising labour supply generates an additional economic loss from a negative economic shock compared to a model with fixed labour supply....

We introduce endogenous labour supply decisions with an extensive and intensive margin in a spatial computational general equilibrium model. We show that endogenising labour supply generates an additional economic loss from a negative economic shock compared to a model with fixed labour supply....

This paper revisits the no-recall assumption in job search models with take-it-or-leave-it offers. Workers who can recall previously encountered potential employers in order to engage them in Bertrand bidding have a distinct advantage over workers without such attachments. Firms account for this...

It is often argued that informal labor markets in developing countries promote growth by reducing the impact of regulation. On the other hand informality may reduce the amount of social protection offered to workers. We extend the wage-posting framework of Burdett and Mortensen (1998) to allow...

This paper examines wage dispersion and wage dynamics in a stock-flow matching economy with on-the-job search. Under stock-flow matching, job seekers immediately become fully informed about the stock of viable vacancies. If only one option is available, monopsony wages result. With more than one...