costs influence insider wages and outsiders? opportunities and how these costs affect employment and unemployment. We also … address the more complex, and open, question of how employment and unemployment move through time, in response to labor market … shocks. The second section deals with the insider-outsider theory in relation to two important economic institutions: unions …

In theoretical literature, the effects of employment protection on unemployment are ambiguous. Higher employment … can unambiguously increase unemployment. Interestingly, I find that tightening the restrictions on redundancies and …

sector in a model of equilibrium unemployment. We find that higher firing costs may even reduce temporary work agency …

In a New Keynesian DSGE model with labor market frictions and liquidity-constrained consumers aggregate unemployment is … reacts very differently from the group of liquidity-constrained consumers implying that the unemployment rate is likely to …'s parameters, we find that the size of the fiscal (unemployment) multiplier increases with i) highly sticky prices, ii) high …