shaping welfare, trade flows, productivity, and unemployment. We show that both countries gain from trade but that the … vacancies, firing costs, and unemployment benefits. We study the interaction of labor market rigidities and trade impediments in … frictions in both countries benefits both of them. The model generates rich patterns of unemployment. In particular, better …

, explains the initial rise in unemployment. The reduction in union power also helps to explain the acceleration in productivity …We argue that the 1970s were characterized by attempts to maintain a cooperative, low unemployment equilibrium in the … low wages and productivity. A fall in union power results in a reduction in these inefficiencies and leads not only to a …

shocks may initially create a positive trade-off between productivity and unemployment, they set in motion a dynamic path of … contributions of this paper are to show how a productivity-unemployment trade-off might emerge and how it might subsequently …This paper shows how misleading is the facile contrast of Europe following a path of high productivity growth, high …

may have increased unemployment, and shows that this is likely to occur if technological change is associated with an … increase in the productivity and/or the supply of skilled relative to unskilled workers. These effects are stronger when hiring …

Since 1979 productivity growth in Britain has improved markedly compared with Europe. The turnaround in productivity … has been a worsening in the trade-off between unemployment and inflation. The poor unemployment/inflation trade-off is due … to the neglect of skill training and education (causing skill shortages) and to the build-up of long-term unemployment …

States in terms of unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies …. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The … with calibrated parameters which only differ by the degree of unemployment insurance and assume that they are hit by a …

long-run unemployment rate is independent of the level of productivity and the magnitude of the labour force. The model …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 …