find a high degree of downward nominal wage rigidity, which for rates of inflation lower than three percent is shown to … lead to higher equilibrium unemployment via the generated real wage wedge. …

Why might there be a long-run trade-off between growth and unemployment? In general equilibrium, the returns on the … interest. If the wage grows in line with productivity, there is a positive relation between growth and unemployment. If the … incentive to hire. There emerges a trade-off between growth and unemployment. …

unemployment. We show that the socially efficient incentive power of the equilibrium wage contract is constrained in the absence of … unemployment benefits. We then apply the model to explain the recent increase in performance-pay contracts. Within our model, this … factors is an increase in the equilibrium unemployment rate. …

Employment and Unemployment Patterns data (ABS, 1997) to identify the determinants of low paid employment in the male and female …

The existence of downward nominal wage rigidity has been used to argue against the adoption of zero inflation targets … pursuit of small positive rates of inflation as an objective of monetary policy. …

This paper shows that, Rueff (1925, 1931) distinguished [a] a « permanent » unemployment due to excessive real wages … relative to the labor productivity, [b] a “temporary” unemployment due to a decline in the economic activity resulting from a … cyclic decrease of the price level, and [c] a « minimum » frictional unemployment prevailing in the normal functioning of the …

We distinguish and assess three fundamental views of the labor market regarding the movements in unemployment: (i) the … that all the short-run fluctuations automatically turn into long-run changes in the unemployment rate. We assert the …

in unemployment and vacancies but also wages, is the drop in consumption for the unemployed. In addition, explaining the …