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Economic Growth, Sectoral Structure and Unemployment

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Author Info

  • Groot, H.L.F. de

    (Tilburg University)

Abstract

Abstract: This thesis consists of three parts that deal with the relationship between the relative wealth of nations, economic growth, and the sectoral structure of economies. In the first part, the focus is on the relative stagnancy of Europe versus the USA in terms of productivity levels and unemployment. It is argued that generous social security systems in Europe and the high-fixed-cost technologies employed in the USA put the USA in a relatively advantageous position to perform Research and Development. Part two explicitly considers the relationship between growth and unemployment in the context of a dual labour market. This part examines how the organization of work, competition, the generosity of the social security system, the presence of trade unions, and institutional designs that link unemployment benefits to previous earnings affect both growth and unemployment. In part three, the determination, development, and social optimality of the sectoral composition of economies is discussed. Differential productivity growth between sectors, non-unitary income elasticities of demand, and outsourcing of non-core activities are shown to be important candidates for explaining the observed process of deindustrialization in advanced economies.

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Bibliographic Info

Paper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-76807.

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Length: 301
Date of creation: 1998
Date of revision:
Publication status: Published
Handle: RePEc:ner:tilbur:urn:nbn:nl:ui:12-76807

Note: Dissertation
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Web page: http://www.tilburguniversity.edu/

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References

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  1. George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59, pages 185.
  2. Yang, Xiaokai & Heijdra, Ben J, 1993. "Monopolistic Competition and Optimum Product Diversity: Comment," American Economic Review, American Economic Association, vol. 83(1), pages 295-301, March.
  3. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716.
  4. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
  5. Teulings, Coen N., 1997. "A new theory of corporatism and wage setting," European Economic Review, Elsevier, vol. 41(3-5), pages 659-669, April.
  6. Weiss, Andrew W, 1980. "Job Queues and Layoffs in Labor Markets with Flexible Wages," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 526-38, June.
  7. Alwyn Young, 1998. "Growth without Scale Effects," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 41-63, February.
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Citations

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Cited by:
  1. Martijn Brons & Henri L.F.M. de Groot & Peter Nijkamp, 1999. "Growth Effects of Fiscal Policies - A Comparative Analysis in a Multi-Country Context," Tinbergen Institute Discussion Papers 99-042/3, Tinbergen Institute.
  2. Nahuis, R., 2000. "Knowledge and Economic Growth," Open Access publications from Tilburg University urn:nbn:nl:ui:12-83771, Tilburg University.
  3. repec:dgr:uvatin:1999042 is not listed on IDEAS
  4. van Schaik, Anton B. T. M. & de Groot, Henri L. F., 2002. "Macroeconomic consequences of downsizing," Economic Modelling, Elsevier, vol. 19(3), pages 331-352, May.
  5. Meckl, Jurgen, 2004. "Accumulation of technological knowledge, wage differentials, and unemployment," Journal of Macroeconomics, Elsevier, vol. 26(1), pages 65-82, March.
  6. 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.
  7. repec:dgr:uvatin:2099042 is not listed on IDEAS

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