@techreport{9c4b8e2557ba454b8e21cd14d25031c9,
title = "Search Frictions, Efficiency Wages and Equilibrium Unemployment",
abstract = "This paper analyses equilibrium unemployment in a model that combines efficiency wages with search and matching frictions in the labour market. We express equilibrium unemployment as the sum of a pure efficiency wage component and a component that reflects search frictions. Using standard values of calibrated parameters, we argue that over 85% of equilibrium unemployment is due to efficiency wage effects.",
author = "Christopher Martin and Bingsong Wang",
year = "2014",
month = oct,
language = "English",
series = "Bath Economics Research Working Papers",
publisher = "Department of Economics, University of Bath",
type = "WorkingPaper",
institution = "Department of Economics, University of Bath",
}
