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Observations and Conjectures on the U.S. Employment Miracle

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Author Info

  • Krueger, A.
  • Pischke, J.S.

Abstract

This paper has three goals; first to place U.S. job growth in international perspective by exploring cross-country differences in employment and population growth. The second goal is to evaluate the labor markets rigidities hypothesis. Although greater wage flexiblity probably contributes to the U.S.'s comparative success in creating jobs for its population, the slow growth in employment in many European countries appears too uniform across skill groups to result from relative wage inflexibility alone. Furthermore, a great deal of a labor markets adjustment seems to take place at a constant real wage in the U.S. This leads to the third goal: to speculate on other explanations why the U.S. has managed to successfully absorb so many new entrants t o the labor market.

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Bibliographic Info

Paper provided by Massachusetts Institute of Technology (MIT), Department of Economics in its series Working papers with number 97-15.

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Length: 32 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:mit:worpap:97-15

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Postal: MASSACHUSETTS INSTITUTE OF TECHNOLOGY (MIT), DEPARTMENT OF ECONOMICS, 50 MEMORIAL DRIVE CAMBRIDGE MASSACHUSETTS 02142 USA
Phone: (617) 253-3361
Fax: (617) 253-1330
Web page: http://econ-www.mit.edu/
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Postal: MASSACHUSETTS INSTITUTE OF TECHNOLOGY (MIT), DEPARTMENT OF ECONOMICS, 50 MEMORIAL DRIVE CAMBRIDGE MASSACHUSETTS 02142 USA
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Keywords: LABOUR MARKET;

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