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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. Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
  2. Palokangas, Tapio, 1996. "Endogenous growth and collective bargaining," Journal of Economic Dynamics and Control, Elsevier, vol. 20(5), pages 925-944, May.
  3. Kongsamut, Piyabha & Rebelo, Sérgio & Xie, Danyang, 1997. "Beyond Balanced Growth," CEPR Discussion Papers 1693, C.E.P.R. Discussion Papers.
  4. Daveri, Francesco & Tabellini, Guido, 1997. "Unemployment, Growth and Taxation in Industrial Countries," CEPR Discussion Papers 1681, C.E.P.R. Discussion Papers.
  5. 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.
  6. Stadler, Manfred & Wapler, Rüdiger, 2001. "Endogenous skilled-biased technological change and matching unemployment," Tübinger Diskussionsbeiträge 220, University of Tübingen, School of Business and Economics.
  7. 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.
  8. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  9. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  10. Zagler, Martin, 2002. "Services, innovation and the new economy," Structural Change and Economic Dynamics, Elsevier, vol. 13(3), pages 337-355, September.
  11. Cahuc, Pierre & Michel, Philippe, 1996. "Minimum wage unemployment and growth," European Economic Review, Elsevier, vol. 40(7), pages 1463-1482, August.
  12. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  13. Aghion, Philippe & Howitt, Peter, 1991. "Growth and Unemployment," CEPR Discussion Papers 577, C.E.P.R. Discussion Papers.
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Cited by:
  1. Florian Noseleit, 2013. "Entrepreneurship, structural change, and economic growth," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 735-766, September.

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