Petrosky-Nadeau, Nicolas; Zhang, Lu - 2014 - Last rev.: July 16, 2014
potentially explain the unemployment crisis in the Great Depression. The limited responses of wages from credible bargaining to … labor market conditions, along with the congestion externality from matching frictions, cause the unemployment rate to rise …A search and matching model, when calibrated to the mean and volatility of unemployment in the postwar sample, can …