of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which … labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching …

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 …

proposes a model of monopolistic competition with an endogenous determination of workers flows in and out of unemployment …, where wages are determined according to an efficiency wage mechanism. We show that an increase in product market competition … shifts upward. An adverse effect on workers' incentive is at work which pushes real wages up to the point that increased …

. The study could not find any significant effects of unemployment duration on subsequent wages in addition to the incidence …This paper looks at the effects of unemployment on re-employment wage for men using the first seven waves of the … of sample selection and unobserved heterogeneity are also addressed in the analyses. This study finds that, unemployment …