combination of posted reservation wages, depending on parameters. We also show how wages, profits, and unemployment depend on …-specific variable, it is known that there are K reservation wages that could be posted, but generically never more than two actually are … posted in equilibrium. What is unknown is when we get two wages, and which wages are actually posted. For an example with K …

relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes … policies can play an important role in shaping the trade-off. Third, nominal wages tend to be endogenously rigid also upward …, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of …

absence in Europe and develops a stylized model where absence is part of the labor-leisure decision made by workers and the …