Switzerland, traditionally a "zero unemployment" economy, has seen an unprecedented rise in joblessness in the 1990s … although unemployment fell again to a rather low level after 1997. This paper tests whether Switzerland experienced a negative … shock and find that they were rigid, which can explain the relative unemployment increase for this group. Finally, I test …

those who repay the debt if prices and wages are fixed and unemployment occurs in the periods in which public bonds are … grandchildren. -- Demand shortage ; overlapping generations ; public debt ; unemployment ; welfare effects …

market regularities and (ii) macroeconomic dynamics (long-term rates of growth, GDP uctuations, unemployment rates …

This paper analyzes the dynamic effects of different macroeconomic shocks on unemployment in Germany. In a first step …, a cointegration analysis of productivity, prices, real wages, employment, and the unemployment rate reveals two long run … display that price, demand, and labor supply shocks affect unemployment significantly in the short/medium run. Interestingly …

This paper develops a model of unemployment fluctuations. The model keeps the architecture of the Barro and Grossman … flexible to completely rigid. With some price rigidity, aggregate demand influences unemployment through a simple mechanism … thus increases labor demand, which in turn reduces unemployment. We use the comparative-statistics predictions of the model …

causes deficient aggregate demand and thereby unemployment in the presence of nominal wage stickiness attributable to union … wage setting. In this long-run stagnation, generous unemployment benefits reduce unemployment. Moreover, paradoxically …, unemployment declines if labor unions give more weight to nominal wage gains compared with employment increases …

We introduce an aggregate demand externality into the Mortensen-Pissarides model of equilibrium unemployment. Because … firms care about the demand for their products, an increase in unemployment lowers the incentives to post vacancies which … further increases unemployment. This positive feedback creates a coordination problem among firms and leads to multiple …