Resurrecting the participation margin

Ebell, Monique (2008) Resurrecting the participation margin. CEPDP, 873. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 9780853282808

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Abstract

This paper considers a real business cycle model with search frictions in the labor market and labor supply which is elastic along the extensive (participation) margin. Previous authors have found that such models generate counterfactually procyclical unemployment and a positively-sloped Beveridge curve. This paper presents a calibrated model which does indeed generate countercyclical unemployment and a negatively-sloped Beveridge curve despite the presence of a participation margin.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2008 Monique Ebell
Uncontrolled Keywords:	Unemployment, Business Cycles, Labor Force Participation
Library of Congress subject classification:	H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System:	J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E24 - Macroeconomics: Employment; Unemployment; Wages; Intergenerational Income Distribution (includes wage indexation) E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J21 - Labor Force and Employment, Size, and Structure
Sets:	Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP)
Rights:	http://www.lse.ac.uk/library/rights/LSERO.htm
Identification Number:	873
URL:	http://eprints.lse.ac.uk/19570/

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