Aggregate Labor Market Outcomes : The Role of Choice and Chance ∗


Commonly used frictional models of the labor market imply that changes in frictions have large effects on steady state employment and unemployment. We use a model that features both frictions and an operative labor supply margin to examine the robustness of this feature to the inclusion of a empirically reasonable labor supply channel. The response of… (More)

24 Figures and Tables


  • Presentations referencing similar topics