differences in labor market institutions across the same set of countries. It does that by using a DSGE model for a currency area … with sticky prices and labor market frictions. We show that differences in labor market institutions account well for … cyclical inflation differentials. The proposed mechanism is a supply side one in which differences in labor market institutions …

real wages and low unemployment result. With an intermediate view, i.e. when partial equilibrium effects within a sector … are taken into account, high real wages and unemployment result. If all general equilibrium effects are considered at once …, low real wages and low unemployment again result. The assumption that unions and employers' federations are not able to …

bottom-line of the paper is that product market reforms will help to reduce aggregate unemployment under many circumstances … even though sectoral unemployment may increase. We also highlight that the mobility of high-skilled workers and the … distribution of unemployment across sectors determine whether productivity improvements in one sector affect aggregate unemployment …

differences in labor market institutions across the same set of countries. It does that by using a DSGE model for a currency area … with sticky prices and labor market frictions. We show that differences in labor market institutions account well for … cyclical inflation differentials. The proposed mechanism is a supply side one in which differences in labor market institutions …

unemployment results. With an intermediate view, when partial equilibrium effects are taken into account, high real wages and … unemployment results, which may explain the persistence of high unemployment in Europe. If all general equilibrium effects are … incorporated at once, again low real wages and low unemployment results. We thus obtain a hump-shaped relationship between the …