voluntary non-participation and involuntary unemployment which is caused by labor market rationing and model the dynamics of … allows us to test for true state dependence of voluntary non-participation, involuntary unemployment, full-time work and over …

This paper reconsiders the result of Stole and Zwiebel (1996) that when a firm bargains with its workers over the wages …

Using an efficiency-wage model, we examine the relationship between indeterminacy and unemployment insurance. It is … shown that the less unemployment insurance is, the more likely equilibrium is to be indeterminate. Equilibrium can be …

When unemployment prevails, relations with a particular firm are valuable for workers. As a consequence, a worker may … workers with wages that exceed the going market rate. This motivates workers to provide high effort, even though they could … shirk and switch firms. Our results thus suggest that unemployment is not a necessary device to motivate workers. We also …