Blanchard, Olivier (contributor); Galí, Jordi (contributor) - 2006
for unemployed workers to
flnd a job, lead to a surplus associated with existing employment relationships,
with the wage … = 1¡(1¡–)Nt¡1
Among those unemployed at the beginning of period t, a measure Ht ·R10 H(i) di
arehired and start … the beginning of the period can be hired (Ht • Ut).
Note that, from the viewpoint of the unemployed, the index xt has an …