In the most widely analyzed type of efficiency wage model of involuntary unemployment, firms pay wages in excess of … equilibrium unemployment act as a worker discipline device. This paper concerns what is usually considered the most important … involuntary unemployment. Explicit upfront bonds are only quite rarely observed. A more subtle form of the bonding critique argues …

We propose a monetary model in which the unemployed satisfy the official US definition of unemployment: they are people ….e., unemployment is 'involuntary'). We integrate our model of involuntary unemployment into the simple New Keynesian framework with no … capital and use the resulting model to discuss the concept of the 'non-accelerating inflation rate of unemployment'. We then …

similarity of the pattern of segmentation across 66 different countries. The paper goes on to consider how unemployment might be … understood in a labor market segmentation framework. Existing models of unemployment in a dual labor market suggest that … unemployment should be concentrated among those who are ultimately employed in high wage jobs. In fact, unemployment seems to be …

unemployment and job queues so that wages may serve as an effective screening device. This happens because more productive workers … being unemployed than less productive workers. The model is consistent with cyclical movements in average real wages as well … as with differences in unemployment rates across different groups in the population. We also show that the market …

This paper surveys recent developments in the literature on efficiency wage theories of unemployment. Efficiency wage … models have in common the property that in equilibrium firms may find it profitable to pay wages in excess of market clearing …. High wages can help reduce turnover, elicit worker effort, prevent worker collective action, and attract higher quality …

patterns of unemployment. They also explain why different firms may pay similar workers different wages, why wages may be … wages are absolutely rigid aswell as from those in which unemployment arises from asymmetric information …This paper considers two sets of theories attempting to explain wage rigidities and unemployment: implicit contract …

Fluctuations in the equilibrium rate of unemployment can only be understood within a theory of the natural or … equilibrium rate. It is not enough to say that unemployment is the difference between supply and demand in the labor market … themselves better off. At the equilibrium unemployment rate, employers cannot obtain labor at lower cost by offering work at …

The idea that wages rise relative to alternatives as job seniority accumulates is the foundation of the theory of … tenures typically earn higher wages tends to support these views, yet this evidence ignores the decisions that have brought … individuals to the combination of wages, job tenure, and experience that are observed in survey data. Allowing for sources of bias …

Numerous studies have shown large differences in wages for apparently similar workers across industries. These findings … that they have failed to distinguish between union and nonunion workers. Many economists may expect union workers wages to … be set in a noncompetitive fashion but would be surprised if nonunion wages were. We examine the differences in wages …