Using an efficiency-wage model, we examine the relationship between indeterminacy and unemployment insurance. It is … shown that the less unemployment insurance is, the more likely equilibrium is to be indeterminate. Equilibrium can be …

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 …

This report provides an overview of Australia’s labour market policies, with a focus on income support benefits and …