In a general equilibrium model of a small open economy with a nontraded goods sector involuntary low-skilled labour unemployment is introduced by an exogenously given wage rate, orientating ourselves by what has been called in the literature the 'European scenario'. By the concept of constrained...

This paper presents a general-equilibrium model of Innovation, endogenous growth, and unemployment in a disaggregated economy. Unemployment is analyzed w ithin a dual labor market setting, where the labor market is consisting of a primary high-wage and a secondary low-wage sector. The...