Quarterly Journal of Economics Vol. 110 No. 2 1995
The High Unemployment Trap
Abstract
A model of the labor market under firing restrictions and endogenous quits is constructed. It is shown that in the spirit of Blanchard and Summers, the model can generate multiple equilibria for plausible parameter values, with a low quits/high unemployment equilibrium coexisting with a high quits/low unemployment equilibrium.
- DOI
- 10.2307/2118449
- Volume
- 110
- Issue
- 2
- Pages
- 527-550
- Language
- en
- Sources
- bibtex:phds-export.bib crossref openalex