unemployment, and end up being circumvented by informal contracts. This paper uses Brazilian microeconomic data to show that the … could have contributed to the ensuing higher rates of unemployment in the country. Moreover, the paper shows that states …

relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes …, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of … inflation decreases: this implies a long-run trade-off also between the volatility of unemployment and that of wage inflation. …