. Furthermore, they fail to allow for quantity rationing and to model unemployment as a catastrophic event. The macroeconomics based …

We propose a theory of low-frequency movements in unemployment based on asymmetric real wage rigidities. The theory … generates two main predictions: long-run unemployment increases with (i) a fall in long-run productivity growth and (ii) a rise …-run unemployment over the 1980s and its rise during the late 2000s. …

This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of … a permanent reduction in wealth and consumption and a permanent increase in the unemployment rate. My work suggests that …

Implicit contract theory has been successful in explaining wage rigidity but not unemployment. We argue that the theory … restrictions contracts do not result in unemployment but that the market equilibrium is not constrained Pareto efficient. Our main … do not lead to unemployment, but limited observability may lead to unemployment. If, however, two or more restrictions …

workers, that this presumption is in general misplaced: the impact of severance payments on unemployment is qualitatively … unemployment, depending on the union’s coverage of outsiders’ contracts. This prediction finds empirical support in a panel dataset …

The paper analyses the determinants of interwar unemployment using a previously unexploited quarterly data set for 1924 …-39. Individual equations for insured employment, insured unemployment and the nominal wage rate are estimated and tested. The results … interpretations which emphasize structural unemployment, wage rigidity or benefit-induced unemployment: this helps explain why such …

The paper surveys recent analyses of rising unemployment in Europe based on the concept of the natural rate. It argues … efficiency wages, hysteresis, and insiders/outsiders are related to a core theory in which the unemployment benefit is the basic …, and that in its absence they would fail to explain unemployment. …