unemployment across a sample of OECD countries. Using an incomplete markets variant of the fair wage real business cycle model …, increases in the gross replacement rate of public unemployment insurance are shown to increase the volatility of employment, and … decrease the volatility of real wages, ceteris paribus. For a sample of 14 OECD countries over the period 1985-2005, the gross …

similarity of the pattern of segmentation across 66 different countries. The paper goes on to consider how unemployment might be … understood in a labor market segmentation framework. Existing models of unemployment in a dual labor market suggest that … unemployment should be concentrated among those who are ultimately employed in high wage jobs. In fact, unemployment seems to be …

wages and employment. To this end, we consider a labor market in which a firm's manager chooses the set of workers to hire …, managers elect to raise wages and to hire more workers. However, in economic slowdowns, managers may find it optimal to freeze … both wages and employment. Moreover, consistent with Bewley (1999), in times of severe economic downturns managers respond …

We introduce wage setting via efficiency wages in the neoclassical one-sector growth model to study the growth effects … economic variables will be different because wages are a state variable when wage inertia is introduced. In particular, we show … that the model with wage inertia can explain some growth patterns that cannot be explained when wages are flexible. We also …