Fiche du document
3 octobre 2003
- handle: 10670/1.1ee8qv
- hal: hal-01053498
- SCIENCESPO: 2441/9024
Ce document est lié à :
info:eu-repo/semantics/altIdentifier/hdl/2441/9024
info:eu-repo/semantics/OpenAccess
Citer ce document
Pietro Garibaldi et al., « Equilibrium Employment in a Model of Imperfect Labour Market », Archive ouverte de Sciences Po (SPIRE), ID : 10670/1.1ee8qv
Métriques
Partage / Export
Résumé
This paper presents a simple model of imperfect labor markets with endogenous labor market participation and home production. Labor market imperfections take the form of an irreversible entry cost incurred by workers which drives a wedge between the entry into the labor market and exit from the labor market. Labour force participation is thus described by two margins. This simple framework brings several results. First, it delivers an expression for the employment rate and as side-products, a measure of the unemployment rate and the size of the labour force. Second, it distinguishes between two types of non-employed workers: people without a job but willing to work at the equilibrium wage and people not willing to work. Third, it derives endogenously all flows between three labour market states. Fourth, a calibration of the model rationalizes differences in employment rates across selected countries by differences in the market productivity premium and the size of market frictions. Finally, the model is a very simple reduced form of search models with which it is fully consistent: the irreversible entry cost is the opportunity cost of search and depends on aggregate conditions.