Rodríguez-López, Jesús; Solís-García, Mario - Departamento de Economía, Universidad Pablo de Olavide - 2014
1977 and the great recession of 2008. We find that the labor wedge plays a key role during both recessions and that taxes … and labor market institutions are likely behind the wedge movements. We conclude that any model that tries to understand … the causes of recessions that occurred in the last three decades should focus on the labor wedge. …