equilibrium with unemployment always exists; and (ii) some of the unemployment is involuntary, in the sense that it consists of …

by investments in R&D performed in the high-wage sector. Unemployment is determined by the costs and benefits of waiting … for a high-paid job. The wage structure, growth, and unemployment are shown to depend on the way effort is extracted. …

sector, high unemployment for educated youth, weak private sector dependent on government welfare for their survival, rapid …