This paper shows that Keynes's involuntary unemployment derived from Walras's voluntary unemployment by means of … supply function is a strongly increasing function, as in Walras's approach, there might be only voluntary unemployment, and … there might be involuntary unemployment if the equilibrium point locates between boundary points of the horizontal segment …

mobility, while unemployment increases in the country with labor market rigidities, reducing welfare. We also find that taste …

market regularities and (ii) macroeconomic dynamics (long-term rates of growth, GDP uctuations, unemployment rates …