How do asymmetric labor market institutions affect the volatility of innovation and unemployment differentials in a … union model with unemployment, hiring frictions and real wage rigidities. The model provides a rigorous but tractable …. Positively, we find that inflation and unemployment differentials strongly depend on the underlying labor market structures …

Recently, the unemployment gap in the euro area has fallen markedly. However, wages increased less than predicted by … alternative measures for labor market slack, namely the unemployment gap and the European Commission's labor shortage indicator …

volatility of output, inflation and unemployment. These results stand in contrast to theories attributing to excessive regulation … for the rise and persistence of European unemployment. In addition, they suggest that labour market frictions are at most …