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Why was Unemployment in Postwar Britain So Low

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  • Broadberry, Stephen N

Abstract

This paper takes a fresh look at the low unemployment in postwar Britain, which is seen as exceptional rather than the norm. During the 1950s and 1960s low unemployment was reconciled with stable inflation through the exercise of wage restraint. Yet the postwar settlement which underpinned this wage restraint also allowed the entrenchment of restrictive practices, which inevitably slowed the growth of productivity and the feasible real wage, thus contributing to Britain's relative economic decline.

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File URL: http://www.cepr.org/pubs/dps/DP541.asp
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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 541.

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Date of creation: May 1991
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Handle: RePEc:cpr:ceprdp:541

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Keywords: Postwar Settlement; Real Wage; Unemployment;

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Cited by:
  1. J. Bradford De Long & Barry Eichengreen, 1993. "The Marshall Plan: History's Most Successful Structural Adjustment Programme," J. Bradford De Long's Working Papers _109, University of California at Berkeley, Economics Department.
  2. J. Bradford De Long & Barry Eichengreen, . "The Marshall Plan as a Structural Adjustment Programme," J. Bradford De Long's Working Papers _112, University of California at Berkeley, Economics Department.
  3. Hatton, Timothy J., 2002. "Can Productivity Growth Explain NAIRU? Long-run Evidence from Britain, 1871-1999," CEPR Discussion Papers 3424, C.E.P.R. Discussion Papers.

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