We consider a dynamic general equilibrium model with collective wage bargaining and investigate how unemployment … unemployment persistence by its adverse impact on growth, and may even destabilize the adjustment path. If this is the case, a … future fiscal consolidation is needed which further raises unemployment. These results are consistent with empirical evidence …

mainly on dismissals protection, distinguishing between the themes of employment and unemployment development and labor … market dynamics proper. Our discussion of employment and unemployment largely deals with the effect of employment protection …

collapse and rising unemployment, this paper stresses that the impact of the crisis is rather diverse, reflecting differences …

as (i) unemployment rates, (ii) GDP per capita as a measure of welfare, (iii) average weekly work hours, and (iv) income … prosperity and income, high risk of unemployment, and working conditions play an important role in determining working hours …