search query: @indexterm Credit markets / total: 99
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Author: | Koskela, E. Stenbacka, R. |
Title: | Profit sharing, credit market imperfections and equilibrium unemployment |
Journal: | Scandinavian Journal of Economics
2004 : VOL. 106:4, p. 677-701 |
Index terms: | Compensation Credit markets Unemployment Wage determination |
Language: | eng |
Abstract: | The interaction between labour and credit market imperfections is investigated for equilibrium unemployement in the presence of profit sharing. In a partial equilibrium with exogenous outside options, increased bargaining power of banks has adverse employment effects. In a general equilibrium with endogenous outside options, this relationship is frequently reversed; reduced credit market imperfections increase equilibrium unemployment if the labour market imperfections - measured by the bargaining power of trade unions - are sufficiently strong and the benefit-replacement ratio is sufficiently high. |
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