Golosov, Mikhail; Maziero, Pricila; Menzio, Guido - In: Journal of Political Economy 121 (2013) 6, pp. 1160-1160
This paper studies the optimal redistribution of income inequality caused by the presence of search and matching frictions in the labor market. We study this problem in the context of a directed search model of the labor market populated by homogeneous workers and heterogeneous firms. The...