Fonseca, Raquel; Patureau, Lise; Sopraseuth, Thepthida - 2009
This paper examines the impact of labor market institutions (LMI) on business cycle (BC) synchronization. The authors first develop a two-country right-to-manage model of wage bargaining. They find that, following a symmetric demand change, cross-country differences in LMI generate divergent...