Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis J. - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2008
). Assuming that it is costly to hire and fire
workers implies that the employment rate is slow to converge to its steady state … employment prob-
ability is independent of whether she was previously employed or unemployed,
so that her retention rate is equal … finding rate,
and thus current employment depends on past employment. In this setting, a
current monetary shock affects not …