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 … that there is a continuity of analysis from the classics through Keynes to these more recent approaches. Theories of … efficiency wages, hysteresis, and insiders/outsiders are related to a core theory in which the unemployment benefit is the basic …

responsiveness of the unemployment rate to changes in macroeconomic variables. Most importantly, private information increases the … responsiveness of the unemployment rate to changes in the general (type- and effort independent) productivity level. If the changes … also affect the information structure, the responsiveness of the unemployment rate may be large, even if the changes in …

unemployment rates. It may be the case that this locus is steep enough to generate increasing returns to education. This may lead … unskilled are more exposed to unemployment relative to the skilled, as compared with the latter. The two equilibria cannot be …

an individual employer-worker match is allowed, the impact of severance payments on unemployment duration and incidence …

assess whether New Keynesian Economics captures the quintessential features stressed by JM Keynes. Particular attention is …. Furthermore, they fail to allow for quantity rationing and to model unemployment as a catastrophic event. The macroeconomics based …

Using data from the 1981 Family Expenditure Survey we estimate a logit model for the choice between unemployment and … characteristics of the households in the survey and unemployment rates in the industries in which the households usually work. The … influence of tax-benefit reforms on unemployment using an equation that attaches a moderately strong prior belief to the theory. …