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| Lawrence Uren |
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| ''Entrepreneurship and labour market fluctuations'' |
| ( 2007, Vol. 10 No.13 ) |
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| This paper modifies the standard Mortensen and Pissarides model by introducing an endogenous decision of individuals to either become entrepreneurs or workers. This modification has little impact upon the qualitative properties of the standard Mortensen and Pissarides model. However, it can substantially amplify the impact of productivity shocks upon the level of unemployment and vacancies and provide a partial explanation for the lack of unemployment volatility identified by Shimer (2005). |
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| Keywords: |
JEL: J6 - Mobility, Unemployment, and Vacancies: General
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| Manuscript Received : Aug 31 2007 | | Manuscript Accepted : Oct 09 2007 |
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