I consider three views of the labor market. In the first, wages are flexible and employment follows the principle of … bilateral efficiency. Workers never lose their jobs because of sticky wages. In the second view, wages are sticky and … inefficient layoffs do occur. In the third, wages are also sticky, but employment governance is efficient. I show that the …

not impose wage inertia. Instead we derive wage inertia from our specification of how firms and workers negotiate wages … unemployment benefits …

unemployment …

similarity of the pattern of segmentation across 66 different countries. The paper goes on to consider how unemployment might be … understood in a labor market segmentation framework. Existing models of unemployment in a dual labor market suggest that … unemployment should be concentrated among those who are ultimately employed in high wage jobs. In fact, unemployment seems to be …

A number of authors have recently emphasized that the conventional model of unemployment dynamics due to Mortensen and … conventional formulation. An interesting side-product is the emergence of spillover effects of average wages on the bargaining … process. We then show that a reasonable calibration of the model can account well for the cyclical behavior of wages and labor …

patterns of unemployment. They also explain why different firms may pay similar workers different wages, why wages may be … wages are absolutely rigid aswell as from those in which unemployment arises from asymmetric information …This paper considers two sets of theories attempting to explain wage rigidities and unemployment: implicit contract …

unemployment, Keynes emphasis on relative wages has not been reflected in most contemporary discussions. This short paper suggests …While modern economic theorists have produced a variety of explanations for the failure of wages to fall in the face of … available apparatus for understanding actual unemployment and its fluctuations. Such theories are very closely related to the …

model. Their PC was vertical in the long run at the natural unemployment rate, and their short-run curve shifted up whenever … unemployment was pushed below the natural rate. This paper criticizes the underlying assumption of the Friedman-Phelps approach … that the labor market continuously clears and that changes in unemployment down or up occur only in response to “fooling …

the postdisplacement wages of otherwise observationally equivalent workers will be higher for those displaced by plant … closings than for those displaced by layoffs. An extension of our model predicts that the average postdisplacement unemployment … Current Population Surveys. We find that the evidence (with respect to both re-employment wages and postdisplacement …