On equilibrium in monopolistic competition with endogenous labor

摘要

We consider a model of monopolistic competition with several heterogeneous sectors and endogenous labor supply. For low (high) values of the labor supply elasticity, we show that there is always a unique equilibrium. For medium values of the labor supply elasticity, there are either zero or two equilibria. (c) 2021 Elsevier B.V. All rights reserved.