Cheremukhin, Anton A.; Restrepo-Echavarria, Paulina - In: European Economic Review 68 (2014) C, pp. 71-92
We use a search and matching model to decompose the labor wedge into three classes of labor market frictions and evaluate their role for the labor wedge and unemployment. We find that there is an asymmetric effect of labor market frictions on the labor wedge and unemployment. While the wedge is...