In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We …

unemployment is introduced by an exogenously given wage rate, orientating ourselves by what has been called in the literature the …

We introduce "fair" wages in a general-equilibrium model where worker's effort is unobservable and investigate whether … internalize the effect that past wages have on current effort level. We calibrate the model to Bulgarian data (1999-2016), and … quantify the effect of technological shocks on hours and wages in the theoretical setup. Overall, the calibrated model with …

and those predicted to face a penalty compared to their pre-unemployment wage display overly optimistic wage expectations …

This paper extends a general equilibrium model of unemployment and working hours and evaluates the model on a 5 percent … relationship between standard hours, actual hours and hourly wages. The main results are: i) Actual hours only decreased by 40 … percent of the reduction in standard hours. ii) Hourly wages for shift workers rose relative to wages for daytime workers. iii …