The estimation of wage and price adjustment equations rests heavily on the use of tension variables that aim at capturing the disequilibria in the labor and goods markets. Disequilibrium models therefore provide a natural way of endogenizing these tension variables. This paper estimates jointly...

The purpose of this paper is to use individual data to study how the minimum wage and the welfare system combine to affect employment in France. Using the 1997 Labour Force Survey, we decompose non-employment of married women into three components: voluntary, classical (due to the minimum wage)...