Haefke, Christian; Sonntag, Marcus; van Rens, Thijs - Institute for the Study of Labor (IZA) - 2008
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JEL Classification: E24, E32, J31, J41, J64
Keywords: wage rigidity, search and matching model, business cycle … matching model falls severely short of replicating labor market dynam-
ics. In particular, for commonly used calibrations of … matching model
as in Shimer (2005), the elasticity of the wage with respect to productivity is close to
one. We refer to this …