I revisit the General Theory's discussion of the role of wages in employment determination through the lens of the New Keynesian model. The analysis points to the key role played by the monetary policy rule in shaping the link between wages and employment, and in determining the welfare impact...

In current conditions, many EU countries are characterized by crisis, respectively economical recessions. Based on the study undertaken in 2009 by the European Trade Union Institute for Research, Education, Health and Safety are presented the measures applied in some EU countries regarding the...

There is considerable debate about the role of wage rigidity in explaining unemployment. Despite a large body of empirical work, no consensus has emerged on the extent of wage rigidity. Previous attempts to empirically examine wage rigidity have been hampered by small samples and measurement...

We consider a theoretical model in which unions not only take the outside option into account, but also base their wage-setting decisions on an internal reference, called the fairness reference. Wage and employment outcomes and the shape of the aggregate wagesetting curve depend on the weight...

In this paper, we set up a model of economic growth which deals with Keynesian unemployment, from non-Walrasian/Keynesian perspectives, investigate the possibility of persistent “growth cycles” generated and analyze the effects of flexibility of (real) wages on the long-run economic...

We build a model where firing transfers and firing taxes interact with the degree of centralisation in wage bargaining. The comparative statics of the model imply that firing taxes are less harmful for aggregate employment in economies with centralised bargaining as opposed to economies with...

Flexible labour market can be defined as the market with capability to adapt to changing economic conditions so as to keep high employment rate, un-employment and inflation low and ensure continued growth in real incomes. Labour market flexibility has a significant influence on employment level...

Sufficiently flexible labour markets are considered an important precondition for countries to benefit from membership in the monetary union. Economic policy coordination within the European Community is extensive and includes issues related to labour market structures. In this paper we study...

The low interregional labour mobility and the incapacity of the Community Budget to act as a stabilization tool imply that the Spanish labour market should have a high wage flexibility to react quickly in response to asymmetric shocks in the framework defined by the Monetary Union. In this...