In the most widely analyzed type of efficiency wage model of involuntary unemployment, firms pay wages in excess of … equilibrium unemployment act as a worker discipline device. This paper concerns what is usually considered the most important … involuntary unemployment. Explicit upfront bonds are only quite rarely observed. A more subtle form of the bonding critique argues …

This paper updates the Shapiro-Stiglitz (1984) efficiency wage model with technical progress. Involuntary unemployment …. The effect of reducing real (monetary) unemployment benefits has an ambiguous (possibly negative) impact on employment … may cause involuntary unemployment are also discussed (intellectual property rights regimes and labour market restrictions …

In this paper we develop a model of a multi-sector multi-factor small open economy with involuntary unemployment due to … fair wages. The model is used inter alia to analyse the labour market effects of changes in unemployment benefits and the …

Using a dynamic efficiency wage model, where a Phillips curve appears because worker morale depends on the unemployment … on unemployment in two steady states. In one steady state, only structural unemployment occurs. In the other, not only … structural unemployment but also Keynesian unemployment arises. We find that the effects obtained in the former steady state …

in developing countries have multiple equilibria—the same economy can be stuck at different levels of unemployment with …-sharing among the poor is prevalent. It seems reasonable to posit that in such an economy more unemployment leads to more income … increases unemployment rates. As corollaries, we show that (1) within the same society, two different racial groups that may be …

Foreign Capital, National Welfare and Unemployment in a Fair Wage Model …