Hellwig, Martin F; Irmen, Andreas - C.E.P.R. Discussion Papers - 2001
This Paper studies the impact of wage growth on the evolution of employment in an intertemporal general …-state equilibria in which productivity grows at the same rate as wages, the real interest rate is below the laissez-faire level, and so … is the common growth rate of consumption, demand, and output. In these steady-state equilibria employment contracts at a …