Using a dynamic efficiency wage model, where a Phillips curve appears because worker morale depends on the unemployment … on unemployment in two steady states. In one steady state, only structural unemployment occurs. In the other, not only … structural unemployment but also Keynesian unemployment arises. We find that the effects obtained in the former steady state …

In this paper we develop a model of a multi-sector multi-factor small open economy with involuntary unemployment due to … fair wages. The model is used inter alia to analyse the labour market effects of changes in unemployment benefits and the …

This paper explores the decomposition of equilibrium unemployment into involuntary and frictional components using a … that reflects search frictions. Using standard values of calibrated parameters, we find that the bulk of unemployment is …

In the most widely analyzed type of efficiency wage model of involuntary unemployment, firms pay wages in excess of … equilibrium unemployment act as a worker discipline device. This paper concerns what is usually considered the most important … involuntary unemployment. Explicit upfront bonds are only quite rarely observed. A more subtle form of the bonding critique argues …

in developing countries have multiple equilibria - the same economy can be stuck at different levels of unemployment with …-sharing among the poor is prevalent. It seems reasonable to posit that in such an economy more unemployment leads to more income … increases unemployment rates. As corollaries, we show that (1) within the same society, two different racial groups that may be …

find that higher union bargaining power leads to a negative relationship between growth and unemployment. An increase in … between the growth and unemployment rates results. …