The Determinants of Equilibrium Unemployment

Eran Yashiv ()

American Economic Review, 2000, vol. 90, issue 5, 1297-1322

Abstract: The paper takes the search and matching model of the aggregate labor market to the data. It tests the model's empirical validity and employs structural estimation to generate a characterization of the optimal behavior of firms and workers. The model is applied to Israeli data that are uniquely suited for this kind of empirical investigation. The structural estimates are used to quantify the frictions embodied in the model, including the costs of search, the congestion and trading externality effects, and the matching process. A calibration-simulation analysis then studies the effect of several key variables on equilibrium unemployment.

JEL-codes: E24 J64 (search for similar items in EconPapers)
Date: 2000
Note: DOI: 10.1257/aer.90.5.1297
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (169)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.90.5.1297 (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: The Determinants of Equilibrium Unemployment (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:90:y:2000:i:5:p:1297-1322

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().