This paper provides a critique of the "unemployment invariance hypothesis", according to which the behavior of the … labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity, and … equilibrating mechanisms to ensure unemployment invariance and that other markets may perform part of the equilibrating process as …

This paper challenges what is the standard account of UK unemployment, namely that the major swings in unemployment … over the past 25 years are due predominantly to movements in the underlying empirical “natural rate of unemployment” (NRU … unemployment are due, instead, to very prolonged after-effects of persistent (transitory but long-lasting) shocks. We argue that (a …

Labor market frictions are not the only possible factor responsible for high unemployment. Credit market imperfections … European and US unemployment differ so much when labor markets have become more similar at the margin in Europe and the US. To …

for economies with either an earnings-related or flatrate unemployment compensation system are considered. A distinctive … feature of the analysis is the comparison of both unemployment compensation systems in a two-country setting. It is … demonstrated that the performance of a system with earnings-related or flat-rate unemployment benefits depends on whether the labor …

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 …

, profit sharing, and equilibrium unemployment when profit sharing is also a part of a compensation scheme in all industries … sharing. For equilibrium unemployment, we find that if there is also profit sharing in other industries, the effects of … outsourcing and profit sharing on the unemployment rate is ambiguous both in the committed and flexible case. -- Outsourcing …