We consider a dynamic general equilibrium model with collective wage bargaining and investigate how unemployment … unemployment persistence by its adverse impact on growth, and may even destabilize the adjustment path. If this is the case, a … future fiscal consolidation is needed which further raises unemployment. These results are consistent with empirical evidence …

In theoretical literature, the effects of employment protection on unemployment are ambiguous. Higher employment … can unambiguously increase unemployment. Interestingly, I find that tightening the restrictions on redundancies and …

sector in a model of equilibrium unemployment. We find that higher firing costs may even reduce temporary work agency …

In a New Keynesian DSGE model with labor market frictions and liquidity-constrained consumers aggregate unemployment is … reacts very differently from the group of liquidity-constrained consumers implying that the unemployment rate is likely to …'s parameters, we find that the size of the fiscal (unemployment) multiplier increases with i) highly sticky prices, ii) high …