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Globalization, wage setting,next term and the welfare state

Jerger, Jürgen



Abstract

This paper explores the consequences of different aspects of previous termglobalization on wage setting,next term (un)employment, and the welfare state. Social standards are endogenously determined by politicians who have to solve a trade-off between equity and efficiency. This trade-off ultimately results from the previous termwage-settingnext term process, which is modeled as a (sectorally) ...

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