Frisch elasticities in a model of indivisible labor supply with endogenous workweek length
扩展了经典不可分割劳动供给模型，通过引入状态依赖的工时和就业摩擦，将宏观弗里希弹性与微观弹性联系起来，解释了宏观弹性为何远大于微观弹性。
Abstract In this paper, I provide an extension of the classical indivisible labor supply model where a large macro Frisch elasticity is reconciled with a small micro counterpart. Households take as given state‐dependent hours per worker – shaped by a nonlinear mapping from hours worked to labor services and employment frictions – and make intertemporal labor supply decisions. In the standard indivisible labor supply model, aggregate fluctuations are independent of the individual preference parameter that governs the intensive‐margin elasticity. In my model, however, they are connected through the extensive margin whose elasticity is empirically reasonable and is shaped by the individual preference parameter.