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

In order to alleviate unemployment it is often recommended to reduce social security contributions (SSC) and to … compensate for the ensuing loss in revenues by a rise in the value-added tax (VAT). Assuming unemployment to be caused by … neutralised, for example, by imposing a constant wedge, the employment impact will depend on the nature of the unemployment …

reduces equilibrium unemployment under circumstances with sufficiently ?rigid? labour market institutions, i.e. sufficiently …

proposes a model of monopolistic competition with an endogenous determination of workers flows in and out of unemployment …

in developing countries have multiple equilibria - the same economy can be stuck at different levels of unemployment with …-sharing among the poor is prevalent. It seems reasonable to posit that in such an economy more unemployment leads to more income … increases unemployment rates. As corollaries, we show that (1) within the same society, two different racial groups that may be …

This paper compares models used to explain OECD unemployment. The models suggest that the ?natural rate of unemployment …

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 …

In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its … steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a … persistence of unemployment. …

economic incidence if unemployment compensation is subject to social security contributions. Since this is the case in numerous …