Böhm, Michael; Etheridge, Ben; Irastorza-Fadrique, Aitor - 2024
We develop a tractable equilibrium model of the labour market, featuring heterogeneous labour supply elasticities … heterogeneous impact of subsequent demand shifts on wages and employment in Germany. We validate the estimated elasticities with … shocks. Overall, heterogeneous supply elasticities play a key role in explaining occupational changes over recent decades. …