Learning of General Equilibrium Effects and the Unemployment Trap

Arbeitspapier

We examine wage bargaining when employers and labor unions do not always take all general equilibrium effects into account but learn a steady state. If agents do hardly consider general equilibrium effects, low real wages and low unemployment results. With an intermediate view, when partial equilibrium effects are taken into account, high real wages and unemployment results, which may explain the persistence of high unemployment in Europe. If all general equilibrium effects are incorporated at once, again low real wages and low unemployment results. We thus obtain a hump-shaped relationship between the extend of feedback effects incorporated by the bargaining parties and real wages or unemployment.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 254

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Oligopoly and Other Imperfect Markets ; Computable and Other Applied General Equilibrium Models ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General
• Thema: Labor markets ; wage bargaining ; learning of general equilibrium effects ; unemployment ; Theorie der Arbeitslosigkeit ; Lohnverhandlungstheorie ; Arbeitsmarkttheorie ; Gleichgewicht ; Lernprozess ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Gersbach, Hans ; Schniewind, Achim
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2001

Weitere Informationen

• Handle: http://hdl.handle.net/10419/21103
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ