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Embodied human capital unemployment

Author

Listed:
  • Kumaraku, Klajdi
  • Naqvi, Nadeem
  • Rexhepi, Sara

Abstract

Adam Smith (1776) devoted the first three chapters to the division of labor in his Inquiry into the Nature and Causes of the Wealth of Nations. This process, carried far enough, eventually results in a divergence between the distributions of supplies and demands of such horizontally-differentiated distinct types of human capital embodied in different persons, leading to the emergence of Embodied Human Capital Unemployment. We illustrate the relevance of this new concept of unemployment to the U.S economy in the first decade of the 21st Century. This helps achieve a deeper understanding of the current global economic crisis, and inter alia to identification of potentially effective, and potentially ineffective, public policies. (111 words).

Suggested Citation

  • Kumaraku, Klajdi & Naqvi, Nadeem & Rexhepi, Sara, 2011. "Embodied human capital unemployment," MPRA Paper 31161, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:31161
    as

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    References listed on IDEAS

    as
    1. Batra, Raveendra N. & Naqvi, Nadeem, 1989. "Non-traded and intermediate goods and the theory of protection," European Economic Review, Elsevier, vol. 33(4), pages 721-735, April.
    2. J. Peter Neary, 1995. "Factor Mobility and International Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 28(s1), pages 4-23, November.
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    More about this item

    Keywords

    Unemployment; Human Capital; International Trade; Economic Crisis; China; India; U.S.A.; International Capital Mobility;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G01 - Financial Economics - - General - - - Financial Crises

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