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Economic growth, structural change, and search unemployment

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  • Martin Zagler

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Abstract

Economic growth is driven by structural change. Structural change doer not come without a cost, the most evident social cost being high and persistent unemployment. This paper develops an economy with an endogenously expanding service sector, where the constant flow of workers in and out of employment relation leads to structural unemployment.

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File URL: http://hdl.handle.net/10.1007/s00712-008-0025-z
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Bibliographic Info

Article provided by Springer in its journal Journal of Economics.

Volume (Year): 96 (2009)
Issue (Month): 1 (January)
Pages: 63-78

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Handle: RePEc:kap:jeczfn:v:96:y:2009:i:1:p:63-78

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Web page: http://www.springerlink.com/link.asp?id=108909

Related research

Keywords: IT; New economy; Sectoral shifts; Service sector; Endogenous growth; Structural unemployment; Search unemployment; J63; J64; O11; O41;

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  1. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  2. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  3. Kongsamut, P. & Rebelo, S. & Xie, D., 1997. "Beyong Balanced Growth," RCER Working Papers 438, University of Rochester - Center for Economic Research (RCER).
  4. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  5. Cahuc, P. & Michel, P., 1992. "Minimum Wage, Unemployment and Growth," Papiers d'Economie Mathématique et Applications 92.35, Université Panthéon-Sorbonne (Paris 1).
  6. Aghion, Philippe & Howitt, Peter, 1994. "Growth and Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 477-94, July.
  7. Manfred Stadler & Rüdiger Wapler, 2004. "Endogenous Skilled-biased Technological Change and Matching Unemployment," Journal of Economics, Springer, vol. 81(1), pages 1-24, 01.
  8. Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
  9. Zagler, Martin, 2002. "Services, innovation and the new economy," Structural Change and Economic Dynamics, Elsevier, vol. 13(3), pages 337-355, September.
  10. Saviotti, Pier Paolo & Pyka, Andreas, 2004. "Economic development, qualitative change and employment creation," Structural Change and Economic Dynamics, Elsevier, vol. 15(3), pages 265-287, September.
  11. Daveri, Francesco & Tabellini, Guido, 1997. "Unemployment, Growth and Taxation in Industrial Countries," CEPR Discussion Papers 1681, C.E.P.R. Discussion Papers.
  12. Palokangas, Tapio, 1996. "Endogenous growth and collective bargaining," Journal of Economic Dynamics and Control, Elsevier, vol. 20(5), pages 925-944, May.
  13. Pier Saviotti & Andreas Pyka, 2004. "Economic development by the creation of new sectors," Journal of Evolutionary Economics, Springer, vol. 14(1), pages 1-35, January.
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Cited by:
  1. Florian Noseleit, 2011. "Entrepreneurship, structural change, and economic growth," Papers in Evolutionary Economic Geography (PEEG) 1104, Utrecht University, Section of Economic Geography, revised Jan 2011.

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