The high unemployment trap

Gilles Saint-Paul

Research output: Contribution to journalArticle

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.

Original languageEnglish (US)
Pages (from-to)527-550
Number of pages24
JournalQuarterly Journal of Economics
Volume110
Issue number2
DOIs
StatePublished - May 1995

ASJC Scopus subject areas

  • Economics and Econometrics

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