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Economic Growth, Structural Change, and Search Unemployment

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  • Zagler, M.

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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Bibliographic Info

Paper provided by European University Institute in its series Economics Working Papers with number eco2000/16.

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Length: 19 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:eui:euiwps:eco2000/16

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Related research

Keywords: ECONOMIC GROWTH ; UNEMPLOYMENT ; COSTS;

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References

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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  2. Cahuc, Pierre & Michel, Philippe, 1996. "Minimum wage unemployment and growth," European Economic Review, Elsevier, vol. 40(7), pages 1463-1482, August.
  3. Stadler, Manfred & Wapler, Rüdiger, 2001. "Endogenous skilled-biased technological change and matching unemployment," Tübinger Diskussionsbeiträge 220, University of Tübingen, School of Business and Economics.
  4. Aghion, Philippe & Howitt, Peter, 1991. "Growth and Unemployment," CEPR Discussion Papers 577, C.E.P.R. Discussion Papers.
  5. Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
  6. Kongsamut, P. & Rebelo, S. & Xie, D., 1997. "Beyong Balanced Growth," RCER Working Papers 438, University of Rochester - Center for Economic Research (RCER).
  7. Pier Paolo Saviotti & Andreas Pyka, 2002. "Economic Development, Qualitative Change And Employment Creation," Computing in Economics and Finance 2002 362, Society for Computational Economics.
  8. Palokangas, Tapio, 1996. "Endogenous growth and collective bargaining," Journal of Economic Dynamics and Control, Elsevier, vol. 20(5), pages 925-944, May.
  9. Zagler, Martin, 2002. "Services, innovation and the new economy," Structural Change and Economic Dynamics, Elsevier, vol. 13(3), pages 337-355, September.
  10. Paul Romer, 1991. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  11. 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.
  12. Francesco Daveri & Guido Tabellini, 2000. "Unemployment, growth and taxation in industrial countries," Economic Policy, CEPR & CES & MSH, vol. 15(30), pages 47-104, 04.
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