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 …

and real wage rigidities. In our analysis, we focus on the differentials in inflation and unemployment between countries … inflation and unemployment differentials. Second, we find that asymmetries in labor market structures tend to increase the … volatility of both inflation and unemployment differentials. Finally, we show that it is important to take into account the …

job applicants by employment status affects both the level and the persistence of unemployment and numerically that these ….) could potentially help to explain the high and persistent unemployment in Europe. …