little employment protection and low unemployment benefits, while the European model (generous benefits and higher duration …

We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and …

. We use a New Keynesian model with unemployment to predict the effects of different labor market institutions on …

and real wage rigidities. In our analysis, we focus on the differentials in inflation and unemployment between countries … inflation and unemployment differentials. Second, we find that asymmetries in labor market structures tend to increase the … volatility of both inflation and unemployment differentials. Finally, we show that it is important to take into account the …

In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We …