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Can a Real Wage Decrease Cure Unemployment? A General Equilibrium Analysis for Belgium

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  • Victor GINSBURGH

    (UNIVERSITE LIBRE DE BRUXELLES, DULBEA)

Abstract

In a series of papers (Ginsburgh and Erlich (1984), Ginsburgh and Van der Heyden (1985), Erlich, Ginsburgh and Van der Heyden (1985)), we have tried to assess by how much the real wage should be or should have been decreased in order to ensure short and /or ling run full employment. This short note describes the main ideas lying behind the general equilibrium model built to answer these questions and summarizes the main results.

Suggested Citation

  • Victor GINSBURGH, 1985. "Can a Real Wage Decrease Cure Unemployment? A General Equilibrium Analysis for Belgium," Discussion Papers (REL - Recherches Economiques de Louvain) 1985039, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvre:1985039
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