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Unions, Dutch Disease and Unemployment

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  • Chatterji, Monojit
  • Price, Simon

Abstract

Models are needed that can explain both the recent structural chang e in the U.K. economy and the possibility that this might have long-r un effects on unemployment. The major results are that arise in material prices is likely to increase long-run unemployment for countries that are net importers of materials, but might lower it for net exporters; that the discovery of a resource like North Sea oil lowers equilibrium unemployment; and that a model with exogenous "union" wages cannot predict the observed pattern of deindustrialization after an oil discovery, but one with an endogenous union wage may. Copyright 1988 by Royal Economic Society.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 40 (1988)
Issue (Month): 2 (June)
Pages: 302-21

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Handle: RePEc:oup:oxecpp:v:40:y:1988:i:2:p:302-21

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Cited by:
  1. van der Ploeg, Frederick, 2006. "Challenges and Opportunities for Resource Rich Economies," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5688, C.E.P.R. Discussion Papers.
  2. Frederick Van der Ploeg, 2010. "Natural Resources: Curse or Blessing?," CESifo Working Paper Series, CESifo Group Munich 3125, CESifo Group Munich.
  3. Erling Røed Larsen, 2004. "Escaping the Resource Curse and the Dutch Disease? When and Why Norway Caught up with and Forged ahead of Its Neighbors," Discussion Papers, Research Department of Statistics Norway 377, Research Department of Statistics Norway.

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