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Entrepreneurship and labour market fluctuations

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Author Info
Lawrence Uren () (University of Melbourne)

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Abstract

This paper modifies the standard Mortensen and Pissarides model by introducing an endogenous decision of individuals to either become entrepreneurs or workers. This modification has little impact upon the qualitative properties of the standard Mortensen and Pissarides model. However, it can substantially amplify the impact of productivity shocks upon the level of unemployment and vacancies and provide a partial explanation for the lack of unemployment volatility identified by Shimer (2005).

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File URL: http://economicsbulletin.vanderbilt.edu/2007/volume10/EB-07J60005A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 10 (2007)
Issue (Month): 13 ()
Pages: 1-11
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:10:y:2007:i:13:p:1-11

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Postal: Economics Bulletin, Department of Economics, 414 Calhoun Hall, Vanderbilt University, Nashville TN 37235, USA
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Related research
Keywords: business cycle fluctuations; unemployment; vacancies;

Find related papers by JEL classification:
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies

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