Indivisible labor supply and involuntary unemployment: Monopolistic competition model

Tanaka, Yasuhito (2019): Indivisible labor supply and involuntary unemployment: Monopolistic competition model.

Abstract

We show the existence of involuntary unemployment without assuming wage rigidity. A key point of our analysis is indivisibility of labor supply. We derive involuntary unemployment by considering utility maximization of consumers and profit maximization of firms in an overlapping generations model under monopolistic competition with indivisibility of labor supply.

• Item Type: MPRA Paper
• Language: English
• Keywords: monopolistic competition, involuntary unemployment, indivisible labor supply
• Subjects: E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes ; Keynesian ; Post-Keynesian; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity

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