Andersen, Torben M. (contributor); … - 2008
-to-manage structure). That
is, given wages, actual employment is determined by labour demand. The de-
mand for household h�s labour …
To model nominal rigidities, it is assumed that wages are set by households in
a staggered fashion with random duration … it (h), with probability i , and the expected duration of a
contract given by (1 i) 1. For given wages, employment is …