Search Frictions, Efficiency Wages and Equilibrium Unemployment

Christopher Martin, Bingsong Wang

Research output: Working paper / PreprintWorking paper

206 Downloads (Pure)


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 effciency wage effects.
Original languageEnglish
Place of PublicationBath, UK
PublisherDepartment of Economics, University of Bath
Publication statusPublished - Oct 2014

Publication series

NameBath Economics Research Working Papers


Dive into the research topics of 'Search Frictions, Efficiency Wages and Equilibrium Unemployment'. Together they form a unique fingerprint.

Cite this