Entrepreneurship and labour market fluctuations
Economics Bulletin, 2007, vol. 10, issue 13, 1-11
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).
JEL-codes: J6 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-07j60005
Access Statistics for this article
More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().