security system in an economy with unemployment caused by trade unions. Using a simple two-period overlapping generations …

unemployment. Our model succeeds in replicating the empirical fact of a downward sloping Phillips curve for low inflation rates and … consumption, more attractive. Less consumption is associated with less output and therefore higher unemployment. To the contrary … increase in unemployment. …

exacerbates unemployment. Our richer setting allows for generational differences in the motivations for job search to be reflected … in two distinct inverted U‐shaped relationships between unemployment and high‐wage employment, one for youth and a … different one for adults. In turn, the relationship between overall unemployment and high‐wage employment is shown to be non …