Aggregate implications of indivisible labor, incomplete markets, and labor market frictions

• 成果类型: Article
• 署名作者: Krusell, Per; Mukoyama, Toshihiko; Rogerson, Richard; Sahin, Ayseguel
• 署名单位: Arizona State University; Arizona State University-Tempe; National Bureau of Economic Research; National Bureau of Economic Research; Princeton University; Center for Economic & Policy Research (CEPR); University of Virginia; Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2008.03.008
• 发表日期: 2008
• 页码: 961-979
• 关键词: indivisible labor; incomplete markets; labor market frictions

摘要

We study the impact of tax and transfer programs on steady-state allocations in a model with search frictions, an operative labor supply margin, and incomplete markets. In a benchmark model that has indivisible labor and incomplete markets but no trading frictions we show that the aggregate effects of taxes are identical to those in the economy with employment lotteries, though individual employment and asset dynamics can be different. The effect of frictions oil the response of aggregate hours to a permanent tax change is highly nonlinear. There is considerable scope for substitution between voluntary and frictional nonemployment in some situations. (C) 2008 Elsevier B.V. All rights reserved.