Multiple equilibria in the British labour market : Some empirical evidence
AbstractThis paper constructs a simple, imperfectly competitive macro model which may have single or multiple equilibria depending on whether there are constant or increasing returns to scale in production. The model can be estimated and so can be used not only to test multiple versus single equilibrium models, but also to test whether multiple equilibrium models are capable of explaining the observed behaviour of unemployment. The model is estimated for the British economy for the period 1951-87. Some evidence for multiple equilibria is found and using such a model suggests that the rise in unemployment in Britain in the 1980s is best understood as a move from a low- to a high-equilibrium unemployment rate. Although the multiple equilibrium model does perform better than a single equilibrium model, however, the difference is not very significant so that there must remain considerable uncertainty about this issue.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 36 (1992)
Issue (Month): 7 (October)
Contact details of provider:
Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- Manning, Alan, 1991. "Multiple Equilibria in the British Labour Market: Some Empirical Evidence," CEPR Discussion Papers 540, C.E.P.R. Discussion Papers.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Xavier Raurich & Hector Sala Lorda & Valeri Sorolla, 2004.
"Unemployment, growth and fiscal policy: new insights on the hysteresis hypothesis,"
wpdea0404, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Raurich, Xavier & Sala, Hector & Sorolla, Valeri, 2006. "Unemployment, Growth, And Fiscal Policy: New Insights On The Hysteresis Hypothesis," Macroeconomic Dynamics, Cambridge University Press, vol. 10(03), pages 285-316, June.
- Xabier Raurich & Hector Sala & Valeri Sorolla, 2005. "Unemployment, growth and fiscal policy: new insights on the hysteresis hypothesis," Working Papers 0502, International Economics Institute, University of Valencia.
- Raurich, Xavier & Sala, Hector & Sorolla, Valeri, 2004. "Unemployment, Growth and Fiscal Policy: New Insights on the Hysteresis Hypothesis," IZA Discussion Papers 1127, Institute for the Study of Labor (IZA).
- Sujit Kapadia, 2005. "Optimal Monetary Policy under Hysteresis," Economics Series Working Papers 250, University of Oxford, Department of Economics.
- Joerg Lingens & Joerg Heining, 2006. "Social Interaction in Regional Labour Markets," ERSA conference papers ersa06p43, European Regional Science Association.
- Holmlund, B., 1997.
"Unemployment Insurance in Theory and Practice,"
1997-25, Uppsala - Working Paper Series.
- Holmlund, Bertil, 1997. "Unemployment Insurance in Theory and Practice," Working Paper Series 1997:25, Uppsala University, Department of Economics.
- Holmlund, B., 1997. "Unemployment Insurance in Theory and Practice," CEPR Discussion Papers 380, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Kåre Johansen, . "Hysteresis in Unemployment: Evidence from Norwegian Counties," Working Paper Series 0602, Department of Economics, Norwegian University of Science and Technology, revised 20 Aug 2002.
- Ioannis Kaskarelis, 1997. "Aggregate returns to scale in Greek manufacturing," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1673-1678.
- Kolm, Ann-Sofie, 2005. "Work norms and unemployment," Economics Letters, Elsevier, vol. 88(3), pages 426-431, September.
- Campbell leith & Chol-Won Li, 2001. "Unemployment and the Productivity Slowdown: A Labour Supply Perspective," Working Papers 2001_13, Business School - Economics, University of Glasgow.
- Jean Mercenier & Bernardin Akitoby, 1993.
"On intertemporal general-equilibrium reallocation effects of Europe's move to a single market,"
Discussion Paper / Institute for Empirical Macroeconomics
87, Federal Reserve Bank of Minneapolis.
- Mercenier, J. & Akitoby, B., 1994. "On Intertemporal General-Equilibrium Reallocation Effects of Europe's Move to a Single Market," Cahiers de recherche 9401, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Mercenier, J. & Akitoby, B., 1994. "On Intertemporal General-Equilibrium Reallocation Effects of Europe's Move to a Single Market," Cahiers de recherche 9401, Universite de Montreal, Departement de sciences economiques.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.