numerical values for equilibrium unemployment and wage dispersion. The theory makes the novel prediction that wage dispersion is …

unemployment. We show that the socially efficient incentive power of the equilibrium wage contract is constrained in the absence of … unemployment benefits. We then apply the model to explain the recent increase in performance-pay contracts. Within our model, this … factors is an increase in the equilibrium unemployment rate. …

among OECD countries during 1970-2003. We identify three types of non-neutrality as concerns unemployment. These include the …-generality increases unemployment rates. The empirical results from the general conditional model suggest that government intervention and … a constrained bargaining range clearly increase unemployment, while a few of the cost shifting variables have unexpected …

unemployment. We show that the incentive power of the equilibrium wage contract is constrained socially efficient in the absence of … unemployment benefits. We then apply the model to explain the recent increase in performance-pay contracts. Within our model, this … factors is an increase in the equilibrium unemployment rate. …