Search results for "Voluntary unemployment"
showing 2 items of 2 documents
Fair Wages and Unemployment in a Small Open Economy
2006
In this paper we develop a model of a multi-sector multi-factor small open economy with involuntary unemployment due to fair wages. The model is used inter alia to analyse the labour market effects of changes in unemployment benefits and the domestic labour supply. Our analysis covers both the case where factor prices do not react to endowment changes - as in the Heckscher-Ohlin model - and the case where they do. Results are sensitive to this distinction, thereby emphasizing the benefit of employing a general production structure that encompasses both cases.
Les limites de la théorie du salaire d'efficience
1998
Efficiency wage theory, evolved by the "new keynesians", is part of a research programme concerned with explaining "involuntary" unemployment as part of the "general equilibrium". So, these works are a synthesis attempt of neo-classical and keynesian analyses in the employment area. Indeed, the authors place their analysis in a walrasian framework, but they integrate a keynesian concept to complete their models. In order to achieve their purpose, the efficiency wage theorists formulate two propositions on which their argument is based: 1° the relation supposed rising between the rate of wage and the productivity of wage earners, 2° the determination of the rate of wage outside the market. W…