Acemoglu, Daron; Hawkins, William B. - In: Theoretical economics : TE ; an open access journal in … 9 (2014) 3, pp. 583-628
We present a generalization of the standard random-search model of unemployment in which firms hire multiple workers …-trivial dispersion of firm sizes; when firms' production technologies exhibit decreasing returns to labor, it also generates wage … unemployment ratio to a shock to labor productivity can be somewhat more persistent than in the Mortensen-Pissarides benchmark …