The paper explores the relation between wages, wage differentials and, the level and structure of unemployment within a wage bargaining model. There are two types of individuals: skilled and unskilled. The bargained wage of each group depends on the respective replacement rate and determines...

The paper develops an overlapping generations model that highlights interactions between social security, unemployment and growth. The social security system has two components: old age pensions and unemployment insurance. Pensions have a direct effect on economic growth. Both pensions and...