Sasaki, Hiroaki; Matsuyama, Jun; Sako, Kazumitsu - Graduate School of Economics, Kyoto University - 2012
We analyze the effect of the wage gap between regular and non-regular employment on a macroeconomy by using a Keynesian dynamic model. If the steady state equilibrium exhibits the stagnationist regime, the size of the reserve army effect affects the stability of the equilibrium. On the other...