Elasticity of Supply to the Firm and the Business Cycle

  title={Elasticity of Supply to the Firm and the Business Cycle},
  author={Alyssa Depew and Arindrajit Dube and Torberg Falch and Price V. Fishback and Taylor Jaworski and Ryan Johnson and Ronald L. Oaxaca and Michael D. Ransom and Michael R Reich},
A body of recent empirical work has found strong evidence that the labor elasticity of supply to the firm is finite, implying that firms may have wage setting power. However, these studies capture only snapshots of the parameter. We study this parameter over a period that provides substantial variation in the business cycle. Using a rich employee level… CONTINUE READING