#2005-045A "Uniform Working Hours and Structural Unemployment"
by Haoming Liu, Yi Wen, and Lijing Zhu
June 2005

In this paper, we construct a simple model based on heterogeneity in workers' productivity and homogeneity in their working schedules. This simple model can generate unemployment, even if wages adjust instantaneously, firms are perfectly competitive, and firms can perfectly observe workers' productivity and effort. More...

PUBLISHED: Annals of Economics and Finance, May 2007, 8(1), pp. 113-36