The paper evaluates the effectiveness of growth as a remedy for unemployment in the face of a wage minimum in a Solow-Ramsey growth model. It is shown that growth alone will be sufficient to eventually eliminate any quantity of unemployment, as long as the minimum wage is not set "too high". However, a plausible calibration of parameters indicates that the elimination of even a moderate quantity of unemployment by the process of capital accumulation may take more than two decades.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by Tasmania - Department of Economics in its series Papers with number
1997-01.