Andersen, Torben M. (contributor); … - 2008
union is closed to the outside world.4 Each country
i is populated by a continuum of households h 2 [0;1] and has a …-to-manage structure). That
is, given wages, actual employment is determined by labour demand. The de-
mand for household h�s labour … to the pro-
duction function
Yit = 1
L
itU1
it (5)
5
where Uit is the stochastic period-t productivity of �rms in …