disequilibrium unemployment. For the three standard ways of generating savings, the framework makes clear how capital growth depends … we analyze the long run relationship between growth and unemployment for some standard wage setting rules: constant real … wages, rules that imply a constant unemployment rate and rules with inertia on wages and labor incomes, paying special …

This paper examines interactions between wage bargaining, unemployment, and growth. In the basic model, wage bargaining … determines unemployment and is not influenced by growth. An increase in unemployment benefits increases unemployment and reduces … unemployment, and this, in turn, reduces growth. …

, in terms of economic growth, a passive unemployment policy (unemployment insurance) with an active unemployment policy … of unemployment being growth reducing, under realistic parameterization, we show that the government, under an active … policy, can generate higher growth without any compromise on its own consumption, when compared to the unemployment benefit …