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This paper examines the potential contribution of unemployment hysteresis theories to the understanding of the Belgian … prices in Belgium can cause a downward rigidity in real wages, given the multi-tier real wage bargaining process. Recent …
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We incorporate a wage bargaining structure in a dynamic general equilibrium model and show how this feature changes short and long-run properties of equilibria compared with a perfectly competitive setting. We discuss how employment, capital, and income shares respond to wage setting shocks and...
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