small reduction in the unemployment benefits, or introducing a small cash bonus for workers that get a new job, may have no … e.ect on unemployment in some cases, while eradicating significant levels of unemployment in other cases. Our analysis … multiple equilibria may exist in a game involving both workers and an unemployment-averse government. Furthermore, we explore a …

that labour markets clear competitively. At least for Europe, which has been suffering from high unemployment f or a long … unemployment which results from the union-firm wage bargaining both with optimal and restricted profit taxation when capital is … the private sector playing a Nash game. The main conclusion is that in the presence of unemployment, the conventional …