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Labor Markets and Business Cycles Princeton University Press 2010
Robert Shimer
University of Chicago

TABLE OF CONTENTS:

Introduction vii
Preface ix

Chapter 1: The Labor Wedge 1
1.1 A Representative-Agent Model 1
1.2 Deriving the Labor Wedge 5
1.3 Measurement 7
1.4 Alternative Specification of Preferences 13
1.5 Preference Shocks 16
1.6 From Hours to Unemployment 18

Chapter 2: Benchmark Search Model: Neutrality 20
2.1 Steady State 21
2.2 Productivity Shocks 32
2.3 The Planner's Problem 41
2.4 Extensions 44
2.5 Discussion 56

Chapter 3: Real Effects of Productivity Shocks 58
3.1 General Preferences 59
3.2 Capital 75
3.3 Shocks to the Employment Exit Probability 104
3.4 Other Shocks 112

Chapter 4: Rigid Wages 113
4.1 Wage Indeterminacy 114
4.2 No Capital 116
4.3 Capital 124
4.4 Using Hours Data to Test the Model 144

Chapter 5: Looking Ahead 155
5.1 Theories of Rigid Wages 155
5.2 Empirical Evidence on Rigid Wages 157
5.3 Alternatives to the Matching Function 158
5.4 Relevance to Other Markets 159

Appendix A. Data 161
References 165
Author Index 171