Abstract
Takahashi (2014) has uncovered coding errors in our paper, Chang and Kim (2007)-henceforth, CK. We acknowledge and are embarrassed by these mistakes. We are grateful to Takahashi for uncovering them. While the correction decreases the volatility of the labor market wedge, we find that the main message of CK remains valid: the measured labor market wedge arises endogenously in an economy with incomplete capital markets and indivisible labor supply. For example, our model accounts for 18 percent of the volatility in the labor market wedge in the data; it was 43 percent in CK.
| Original language | English |
|---|---|
| Pages (from-to) | 1461-1466 |
| Number of pages | 6 |
| Journal | American Economic Review |
| Volume | 104 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2014 Apr |
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All Science Journal Classification (ASJC) codes
- Economics and Econometrics
Cite this
}
Heterogeneity and aggregation : Implications for labor-market fluctuations: Reply. / Chang, Yongsung; Kim, Sun Bin.
In: American Economic Review, Vol. 104, No. 4, 04.2014, p. 1461-1466.Research output: Contribution to journal › Review article
TY - JOUR
T1 - Heterogeneity and aggregation
T2 - Implications for labor-market fluctuations: Reply
AU - Chang, Yongsung
AU - Kim, Sun Bin
PY - 2014/4
Y1 - 2014/4
N2 - Takahashi (2014) has uncovered coding errors in our paper, Chang and Kim (2007)-henceforth, CK. We acknowledge and are embarrassed by these mistakes. We are grateful to Takahashi for uncovering them. While the correction decreases the volatility of the labor market wedge, we find that the main message of CK remains valid: the measured labor market wedge arises endogenously in an economy with incomplete capital markets and indivisible labor supply. For example, our model accounts for 18 percent of the volatility in the labor market wedge in the data; it was 43 percent in CK.
AB - Takahashi (2014) has uncovered coding errors in our paper, Chang and Kim (2007)-henceforth, CK. We acknowledge and are embarrassed by these mistakes. We are grateful to Takahashi for uncovering them. While the correction decreases the volatility of the labor market wedge, we find that the main message of CK remains valid: the measured labor market wedge arises endogenously in an economy with incomplete capital markets and indivisible labor supply. For example, our model accounts for 18 percent of the volatility in the labor market wedge in the data; it was 43 percent in CK.
UR - http://www.scopus.com/inward/record.url?scp=84898662265&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84898662265&partnerID=8YFLogxK
U2 - 10.1257/aer.104.4.1461
DO - 10.1257/aer.104.4.1461
M3 - Review article
AN - SCOPUS:84898662265
VL - 104
SP - 1461
EP - 1466
JO - American Economic Review
JF - American Economic Review
SN - 0002-8282
IS - 4
ER -