This paper updates the Shapiro-Stiglitz (1984) efficiency wage model with technical progress. Involuntary unemployment …. The effect of reducing real (monetary) unemployment benefits has an ambiguous (possibly negative) impact on employment … may cause involuntary unemployment are also discussed (intellectual property rights regimes and labour market restrictions …

Post Keynesian (PK) growth models typically fail to model unemployment. That shows up in the absence of any equilibrium … or exploding unemployment rate. The underlying analytical problem is failure to resolve the Harrod (1939) knife edge …