Work

A note on indeterminacy of unemployment equilibrium

Year: 2024

Type: article

Abstract: According to Mortensen (1989), increasing returns to scale in matching may cause multiple equilibria if collective bargaining or efficiency wage is applied. I show that a unique equilibrium exists, also if the Nash bargaining solution is used, if productivity is constant.

Source: Economics Letters

DOI: 10.1016/j.econlet.2024.112091

Author: Juha Virrankoski

Institution: University of Helsinki

Language: English

Topic: Economic theories and models

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,980