Albrecht, James W.; Robayo-Abril, Monica; Vroman, Susan B. - 2017
We extend the Diamond-Mortensen-Pissarides model of equilibrium unemployment to incorporate public-sector employment … unemployment rate, on the division of employment between the private and public sectors, and on the distributions of wages in the …. We calibrate our model to Colombian data and analyze the effects of public-sector wage and employment policy on the …