unemployment. To this goal, we develop a schumpeterian model of endogenous growth: agents have the choice between employment and R … and D activities. Unemployment is caused by the wage-setting behavior of unions. We show that: (i) Increases in the labor … costs or in the power of trade unions lead to higher unemployment and lower economic growth. (ii) Efficient bargain allows …

unemployment. To this goal, we develop a Schumpeterian model of endogenous growth: agents have the choice of being employed or … being doing R&D activities. Unemployment is caused by the wage-setting behavior of unions. We show that: (i) High labor … costs or powerful trade unions lead to higher unemployment and lower economic growth. (ii) Efficient bargain allows to …