Endogenous Market Structures and Labor Market Dynamics

3 We propose a model where oligopolistic competition and firms’ entry in the goods market 4 interact with search and matching frictions in the labor market. In line with U.S. data a substantial 5 fraction of new jobs is created by new firms, net entry and aggregate profits are procyclical despite 6 price markups being countercyclical. Further, the extensive… (More)