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We use a structural macroeconomic model with search and matching frictions on the labour market to analyse the … indicate that the observed higher volatility of this wedge in the CEE region reflects mainly different characteristics of … sources of labour wedge fluctuations across the considered economies. While the labour wedge dynamics in Poland is to large …
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I review theoretical arguments suggesting that certain labour market institutions can be justified for economic efficiency reasons. In models with intrinsic market failures, rigiditiesʺ like employment protection legislation and institutional wage compression may push the economy closer to the...
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