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Labor-market search, welfare ranking and the real wage over the business cycle

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  • Chéron, A.
  • Langot, François

Abstract

This paper considers a particular modification of preferences in a dynamic general equilibrium model with labor-market search that implies, despite the efficient risk-sharing, unemployed workers are worse off. We show that this specific assumption allows to account for the acyclicity of the real wage and its negative correlation with hours.

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Bibliographic Info

Paper provided by CEPREMAP in its series CEPREMAP Working Papers (Couverture Orange) with number 9902.

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Length: 22 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:cpm:cepmap:9902

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