All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to … paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a …

inflation and the extent of real wage rigidity but that these effects depend on the definition of reference norms (e.g. how …

unemployment. The results suggest that the elasticity is indeed negative, i.e. that real wages are lower in local labour markets … with higher unemployment. The size of the elasticity for the euro area is similar to that found in previous studies for a … number of countries, including the United States. Furthermore, there is some variation in the unemployment elasticity by …

unemployment in Europe. These include the influence of trade unions, social security benefits, employment security, mismatch … producer prices are positively associated with structural unemployment. This result is robust to a wide variety of different …

some countries and sectors, our results point to a negative link between employment growth, the unemployment benefit …

learning model appears better suited to capture the gradual wage adjustment of Germany during the 2000s and the one that …