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working schedules. This simple model can generate unemployment, even if wages adjust instantaneously, firms are perfectly … alternative explanation for why unskilled workers are a primary source of structural unemployment"--Federal Reserve Bank of St …
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We formulate and estimate a business cycle model which can account for key business cycle properties of labor market variables and other aggregates. Three features distinguish our model from the standard model with Search And Matching (SAM) frictions in the labor market: frictional firm entry,...
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