model, covering a panel of EU countries, and derives the implied long-run inflation-unemployment tradeoff. Our results …

The paper presents a stochastic insider-outsider model that accounts for the following stylized facts: (1) unemployment … rates display a high degree of serial correlation, or `persistence'; (2) the average rate of unemployment has been higher in … long-run unemployment rate is independent of the level of productivity and the magnitude of the labour force. The model …

We present a theory of involuntary unemployment which explains why the unemployed workers ("outsiders") are unable or …-setting and, as a result, involuntary unemployment may arise. …

This paper compares two theories of involuntary unemployment: the efficiency-wage theory and the insider … unemployment is to explain why there is no underbidding, and we compare the two theories in this contex. …