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Round-about production, co-ordination failure, technological change, and the wage-employment dilemma

Author

Listed:
  • Mario Amendola

    (UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome])

  • Claude Froeschlé

    (CASSIOPEE - Laboratoire de Cosmologie, Astrophysique Stellaire & Solaire, de Planétologie et de Mécanique des Fluides - UNS - Université Nice Sophia Antipolis (1965 - 2019) - INSU - CNRS - Institut national des sciences de l'Univers - Observatoire de la Côte d'Azur - UniCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Luc Gaffard

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Elena Lega

    (CASSIOPEE - Laboratoire de Cosmologie, Astrophysique Stellaire & Solaire, de Planétologie et de Mécanique des Fluides - UNS - Université Nice Sophia Antipolis (1965 - 2019) - INSU - CNRS - Institut national des sciences de l'Univers - Observatoire de la Côte d'Azur - UniCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique)

Abstract

The contrasting experiences of European and the US labour markets suggest to most analysts the conclusion that technological shocks would be the cause of the appearance of unemployment, and institutional settings, that generate real wage rigidity, would be the cause of its persistence. In this paper we intend to invalidate this conjecture. In order to do so we shall turn to an analytical framework which differs from the standard neo-classical one in that it allows to enlighten what happens step by step along a way that begins with the breaking of the existing steady state due to an attempt to bring about a change in technology.

Suggested Citation

  • Mario Amendola & Claude Froeschlé & Jean-Luc Gaffard & Elena Lega, 2001. "Round-about production, co-ordination failure, technological change, and the wage-employment dilemma," SciencePo Working papers Main hal-03428443, HAL.
    • Handle: RePEc:hal:spmain:hal-03428443
    DOI: 10.1016/S0167-2681(01)00184-6
    as

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