A potential benefit of a large market (GDP) is a large number of locally-produced varieties. We attempt to quantify the number of varieties produced in a market by counting the number of firms and plants. Looking at manufacturing industries across countries and over time, we find that variety...

We consider a matching model of employment with wages that are flexible for new hires, but sticky within matches. We depart from standard treatments of sticky wages by allowing worker effort to respond to the wage being too high or low, rendering the effective wage (wage divided by output) more...