Date of Award
2022
Document Type
Honors Thesis (Open Access)
Department
Colby College. Economics Dept.
Advisor(s)
Professor Robert Lester
Abstract
This paper lays out a general equilibrium framework to study and predict the underemployment rate. A heterogeneous labor market in which both workers and firms differ in skill type is considered and calibrated to simulate both unemployment and underemployment rates. Qualitatively, the model’s predictions match the empirical evidence suggesting underemployment decreases with increases to unemployment insurance. Quantitatively, the one-shot foundation limits the model’s predictive capabilities.
Keywords
Macroeconomics, Macroeconomic Theory Underemployment, General Equilibrium
Recommended Citation
Plevin, Benjamin E., "Two Sided Matching: A Study of Underemployment" (2022). Honors Theses. Paper 1377.https://digitalcommons.colby.edu/honorstheses/1377