THE HIGH UNEMPLOYMENT TRAP

Authors
SAINTPAUL G
Citation
G. Saintpaul, THE HIGH UNEMPLOYMENT TRAP, The Quarterly journal of economics, 110(2), 1995, pp. 527-550
Citations number
19
Categorie Soggetti
Economics
Journal title
The Quarterly journal of economics → ACNP
ISSN journal
00335533
Volume
110
Issue
2
Year of publication
1995
Pages
527 - 550
Database
ISI
SICI code
0033-5533(1995)110:2<527:THUT>2.0.ZU;2-H
Abstract
A model of the labor market under firing restrictions and endogenous q uits is constructed. It is shown that in the spirit of Blanchard and S ummers, the model can generate multiple equilibria for plausible param eter values, with a low quits/high unemployment equilibrium coexisting with a high quits/low unemployment equilibrium.