Reynaga, Nikita Céspedes; Rendon, Silvio - Economics Department, State University of New … - 2012
We estimate Frisch elasticity in a labor market with high job turnover. In a context where only around 18% of the …, overestimates Frisch elasticity. We estimate Frisch elasticity at around 0.38, which indicates fairly adjustable wages and little … reaction of hours of work to wage variations. Moreover, we find that the Frisch elasticity is decreasing in income and tended …