Indivisible labor supply and involuntary unemployment: Monopolistic competition model

Yasuhito Tanaka

MPRA Paper from University Library of Munich, Germany

Abstract: We show the existence of involuntary unemployment without assuming wage rigidity. A key point of our analysis is indivisibility of labor supply. We derive involuntary unemployment by considering utility maximization of consumers and profit maximization of firms in an overlapping generations model under monopolistic competition with indivisibility of labor supply.

Keywords: monopolistic competition; involuntary unemployment; indivisible labor supply (search for similar items in EconPapers)
JEL-codes: E12 E24 (search for similar items in EconPapers)
Date: 2019-12-03
New Economics Papers: this item is included in nep-mac and nep-ore
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Citations: View citations in EconPapers (5)

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