The paper questions the predominant view on unemployment and wages in the European Un-ion according to which high … unemployment is primarily caused by labour market rigidities, i.e. social institutions and regulations which prevent “market … decades, no strictly inverse relationship between real wage growth and unemployment can be found. On the contrary …

equities, we examine equilibrium unemployment. While a mechanism of an efficiency wage brings about nominal wage rigidity …, unemployment occurring in our model definitely has Keynesian features. For instance, a reduction in wages rather enhances … unemployment through a decrease in consumption. In addition, our paper shows a possibility of Pareto improvement through an …

unemployment, undue instability, and excess debt. …

unemployment. The public sector is decomposed into general government and an unfunded pension system with a tax benefit linkage … effects. They strengthen labor supply both in terms of job search intensity, leading to lower unemployment rates, and hours …