Carruth, A.A.; Hooker, M.A.; Oswald, A.J. - Department of Economics, University of Warwick - 1998
The paper develops an efficiency-wage model, where input prices affect the equilibrium rate of unemployment. We show that a simple framework based on only two prices (the real price of oil and the real rate of interest) is able to explain the main post-war movements in the rate of US...