In my asymmetric-information model of layoffs, high-productivity workers are more likely to be recalled to their former employer and may choose to remain unemployed rather than to accept a low-wage job. In this case, unemployment can serve as a signal of productivity, and duration of...

We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and balanced budget rules cause a complementarity between capital and employment capable of explaining the existence of multiple equilibrium paths. Hysteresis is viewed as the result...

This paper presents a simple model of imperfect labor markets with endogenous labor market participation and home production. We show that a two-sector economy (home and market) implies a three-state labor market when labor market imperfections take the form of an irreversible entry cost...

Als weiterer Redner beim 3. Munich Economic Summit äußerte sich Prof. Giuseppe Bertola, Universitá di Torino, zu den aus seiner Sicht notwendigen Reformen in Europa. Er unterstrich in seinem Vortrag vor allen Dingen, dass nicht nur die Arbeitsmärkte, sondern auch andere Bereiche reformiert...