Labor-market search, welfare ranking and the real wage over the business cycle

This paper considers a particular modification of preferences in a dynamic general equilibrium model with labor-market search that implies, despite the efficient risk-sharing, unemployed workers are worse off. We show that this specific assumption allows to account for the acyclicity of the real wage and its negative correlation with hours.

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Year of publication:	1999
Authors:	Chéron, A. ; Langot, François
Institutions:	Centre pour la Recherche Économique et ses Applications (CEPREMAP)

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Series:	CEPREMAP Working Papers (Couverture Orange).
Type of publication:	Book / Working Paper
Notes:	22 pages
Classification:	E24 - Employment; Unemployment; Wages ; E31 - Price Level; Inflation; Deflation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005606851