The labor supply elasticity of an individual household and the aggregate labor supply elasticity of all households can … distribution of reservation wages. This article presents a model economy where earnings and wealth distributions are comparable to … those in the microdata. The aggregate labor supply elasticity of such an economy is around one — greater than the typical …

the value of the extensive-margin labor supply elasticity is, the stronger the first channel is. Wage rigidity helps …

A body of recent empirical work has found strong evidence that the labor elasticity of supply to the firm is finite … inter-war period, we are able to estimate the elasticity of supply to the firm during several recessions and expansions. Our … analysis suggests that the elasticity is indeed lower during recessions, consistent with the comparative statics from the …