Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 1992
dominate high-unemployment equilibria. Mobility premia improve aggregate welfare but may increase unemployment. … 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 …