employed to unemployment facilitates a reduction in the level of employment protection; that unemployment benefits are lower …, the more employment reacts to wages; and that a higher level of unemployment and a right-wing government slow down the …In this paper we argue that many of the rigidities that characterize European labour markets can be understood as the …

In this Paper, I analyse the pros and cons of implementing structural reforms of the labour market in booms versus …

specificities for the effect of labor market institutions on the employability of those workers. It shows that while unemployment … for employment protection, provided it is uniform across workers and not specifically higher for older workers. It …

In this paper we study the relationship between labour market institutions and monetary policy. We use a simple … macroeconomic framework to show how optimal monetary policy rules depend on labour institutions (labour adjustment costs, and … nominal and real wage rigidity) and social preferences regarding inflation, employment, and real wages. We also calibrate our …

In this paper we study the political issues associated with reform in the European labour market. We first discuss the … role played by labour market rigidities in European society, and argue that reform is a difficult task because many … labour market reform. …

In this paper we argue that employment protection legislation is more likely to arise when the rents earned by the … greater employment protection. The model also predicts that lower turnover increases the political support for employment … protection and that this political support is greater when employment protection is more harmful for employment. Also, rigidities …

This paper studies, in a model with unemployment, how labour market status affects the preferences for public spending … powerful than the unemployed, and negative persistence if the unemployed are marginally more powerful. Under a uniform … distribution of tastes for the public good, there is no persistence. The preferences of the unemployed may be non-single-peaked, so …

We develop a general equilibrium analysis of the impact of active labour market policy on unemployment, wages and the … employed have little exposure to unemployment and if the demand for unskilled labour is inelastic, there may be political … support for policies which actually raise the equilibrium level of total unemployment. …

A model of the labour market under firing restrictions and endogenous quits is constructed. It is shown that in the … spirit of Blanchard and Summers (1988), the model can generate multiple equilibria, with a low-quits/high-unemployment … equilibrium coexisting with a high-quits/low-unemployment equilibrium. Under weak conditions, low-unemployment equilibria Pareto …

quality of unemployed workers. As a result, the Hosios conditions are no longer valid. To replicate the optimum the worker …