Unemployment and endogenous growth
AbstractIn this paper we develop a two-sector endogenous growth model with a dual labour market, based on efficiency wages. Growth is driven by intentional R&D performed in the high-tech and high-wage sector. It is examined how a change in rivalry among firms affects simultaneously growth and unemployment. On the one hand, an increase of the elasticity of substitution between the product varieties of different high-tech firms reduces market power and leads to higher growth but reduces job prospects. On the other hand, if barriers to entry exist, an increase of the number of rivals in the market (due to removal of entry barriers) leads to lower growth, whereas the effect on aggregate employment is ambiguous.
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.
Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1995-75.
Date of creation: 1995
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
Economic Growth; Wages; Unemployment; Labour Market; Growth Models; labour economics;
Other versions of this item:
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ramos Parreno, Jose Maria & Sanchez-Losada, Fernando, 2002.
"The role of unions in an endogenous growth model with human capital,"
Journal of Macroeconomics,
Elsevier, vol. 24(2), pages 171-192, June.
- Jose Maria Ramos Parreno & Fernando Sanchez Losada, 1999. "The role of unions in an endogenous growth model with human capital," Working Papers in Economics 57, Universitat de Barcelona. Espai de Recerca en Economia.
- Raurich, Xavier & Sorolla, Valeri, 2014. "Growth, unemployment and wage inertia," Journal of Macroeconomics, Elsevier, vol. 40(C), pages 42-59.
- Meckl, Jürgen, 1999. "Efficiency-wage unemployment and endogenous growth," Discussion Papers, Series 1 295, University of Konstanz, Department of Economics.
- Shu-Chen Chang, 2005. "The dynamic interactions among foreign direct investment, economic growth, exports and unemployment: evidence from Taiwan," Economic Change and Restructuring, Springer, vol. 38(3), pages 235-256, December.
- 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.
- Lutz G. Arnold, 2006. "Does the Choice between Wage Inequality and Unemployment Affect Productivity Growth?," German Economic Review, Verein für Socialpolitik, vol. 7, pages 87-112, 02.
- Ziesemer,Thomas, 2002. "Monopolistic Competition, Search Unemployment, and Macroeconomics," Research Memorandum 021, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Bucci, Alberto & Fiorillo, Fabio & Staffolani, Stefano, 2001.
"Can Market Power influence Employment, Wage Inequality and Growth ?,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2000030, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Alberto Bucci & Fabio Fiorillo & Stefano Staffolani, 2003. "Can Market Power Influence Employment, Wage Inequality and Growth?," Metroeconomica, Wiley Blackwell, vol. 54(2-3), pages 129-160, 05.
- Alberto BUCCI & Fabio FIORILLO & Stefano STAFFOLANI, 2000. "Can Market Power influence Employment, Wage Inequality and Growth?," Working Papers 141, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
- Carmeci, Gaetano & Mauro, Luciano, 2003. "Imperfect labor market and convergence: theory and evidence for some OECD countries," Journal of Policy Modeling, Elsevier, vol. 25(8), pages 837-856, November.
- Meckl, Jurgen, 2004. "Accumulation of technological knowledge, wage differentials, and unemployment," Journal of Macroeconomics, Elsevier, vol. 26(1), pages 65-82, March.
- Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.
- Martin Zagler, 1999.
"Endogenous Growth, Efficency Wages, and Persistent Unemployment,"
Department of Economics Working Papers
wuwp066, Vienna University of Economics, Department of Economics.
- Martin Zagler, 2011. "Endogenous Growth, Efficiency Wages, and Persistent Unemployment," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 34-42, April.
- Giovanni Dosi & Giorgio Fagiolo & Roberto Gabriele, 2004.
"Towards an Evolutionary Interpretation of Aggregate Labor Market Regularities,"
LEM Papers Series
2004/02, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Gabriele R. & Fagiolo G. & Dosi G., 2004. "Towards an Evolutionary Interpretation of Aggregate Labor Market Regularities," Computing in Economics and Finance 2004 84, Society for Computational Economics.
- Mondal, Debasis & Gupta, Manash Ranjan, 2008. "Intellectual property rights protection and unemployment in a North South model: A theoretical analysis," Economic Modelling, Elsevier, vol. 25(3), pages 463-484, May.
- Leopold Soegner & Alfred Stiassny, 2000. "A Cross-Country Study on Okun's Law," Working Papers geewp13, Vienna University of Economics Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
- Schaik, A.B.T.M. van & Groot, H.L.F. de, 2000. "Unemployment, growth and efficiency wages," Open Access publications from Tilburg University urn:nbn:nl:ui:12-83963, Tilburg University.
- Vesna Stavrevska, 2011. "The efficiency wages perspective to wage rigidity in the open economy: a survey," International Journal of Manpower, Emerald Group Publishing, vol. 32(3), pages 273-299, July.
- Groot, H.L.F. de & Schaik, A.B.T.M. van, 1997. "Unemployment and catching up: Europe vis à vis the USA," Open Access publications from Tilburg University urn:nbn:nl:ui:12-73836, Tilburg University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Broekman).
If references are entirely missing, you can add them using this form.