cyclical fluctuations are typical for both nominal and real variables, e.g. inflation and unemployment. …

percent in the late 1990s, but the number of industries affected by DNWR has increased. DNWR is more prevalent when inflation … is high,unemployment is low, union density is high and employment protection legislation is strict. …

legislation, high union density, centralised wage setting and high inflation. …

less likely in countries and years with high inflation, low unemployment, high union density and strict employment …

wage moderation, and hence reduce the equilibrium level of unemployment. And third, if wage setters have egalitarian …

a long run trade off between inflation and unemployment for low levels of inflation. The prediction that low inflation … have a stronger bargaining position when they try to prevent a cut in nominal wages. If inflation is so low that some … nominal wages have to be cut, worker’s stronger bargaining position requires higher unemployment in equilibrium. The upshot is …

We estimate the quantitative importance of labour market institutions for equilibrium unemployment in OECD. The … empirical equation for unemployment is based on the solution of a dynamic macroeconomic model where wages and prices are jointly … determined with unemployment. Compared to existing studies, the theoretical model implies a higher order dynamics in the nal …