A number of authors have recently emphasized that the conventional model of unemployment dynamics due to Mortensen and …

explore the joint determination of wages, unemployment, house prices and city size (or migration). A key role of the model is …

This paper looks at models of unemployment which make two central assumptions. The first is that wages are bargained … between firms and employed workers, and that unemployment affects the outcome only to the extent that it affects the labor … market prospects of either employed workers or of firms. The second is that the duration of unemployment affects either the …

than does consumption. At the same time, the model is consistent with a lack of secular movements in hours and unemployment …

advantage of the workers' induces higher unemployment in equilibrium. The upshot is a long run tradeoff between inflation and … unemployment for low levels of inflation. The prediction that low inflation involves higher unemployment in Europe but not in the …

relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes …, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of … inflation decreases: this implies a long-run trade-off also between the volatility of unemployment and that of wage inflation …

the unemployment rate is found to lower the real wage level with an elasticity between -0.04 and -0.13, whereas a Phillips … Curve specification which relates wage changes to the level of the unemployment rate is not convincingly supported by the … external unemployment weakens workers' bargaining strength …

particular, it provides a natural interpretation for the dynamic inflation--unemployment relation found in the data …