(İstanbul Üniversitesi, 2002) Bilgin, Mehmet Hüseyin
The purpose of this paper is to explore the new Keynesian approach on wages and
employment relationship. According to new Keynesian school, market clearing
mechanism does not exist due to rigidities and stickiness. This situation leads
involuntary unemployment. In new Keynesian theory, there are three theories to
explain wage rigidities and involuntary unemployment. This paper analyzes these
theories in detail and discusses the new Keynesian assumptions from the perspective
of Turkish labor market.