age unemployment. Public transfers to early retirees may produce efficiency gains even if they have a negative effect on …

We develop a simple general equilibrium model of production where, despite the existence of involuntary unemployment …, non-equalized job rents are the only distortion. Hence, a standard GDP function exists. Unemployment results from either …

unemployment rate, an increase in firms' profits and a decrease in the utility of both workers and the unemployed. These …, if firms pay efficiency wages, a higher degree of labour market flexibility increases unemployment …