The Relationship between Output and Unemployment with Efficiency Wages
We construct a stylised model of the supply side with goods and labour market imperfections to show that an economy can rationally operate at a low-effort state in which the relationship between output and unemployment is positive. We examine data from the G7 countries over 1960-2001 and find that only German data strongly favour a persistent negative relationship between the level of output and rate of unemployment. The consequence of this is that circumstances exist in which market imperfections could pose serious obstacles to the smooth working of expansionary and/or stabilisation policies and a positive demand shock might have adverse effects on employment. Copyright Verein für Socialpolitik and Blackwell Publishing Ltd. 2007.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 8 (2007)
Issue (Month): (November)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=1465-6485|
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=1465-6485|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Disney, Richard F & Haskel, Jonathan & Heden, Ylva, 2000.
"Restructuring And Productivity Growth In UK Manufacturing,"
CEPR Discussion Papers
2463, C.E.P.R. Discussion Papers.
- Richard Disney & Jonathan Haskel & Ylva Heden, 2003. "Restructuring and productivity growth in uk manufacturing," Economic Journal, Royal Economic Society, vol. 113(489), pages 666-694, 07.
- Jim Malley & Hassan Molana, 2001.
"Monopolistic Competition, Efficiency Wages and Perverse Effects of Demand Shock,"
Dundee Discussion Papers in Economics
122, Economic Studies, University of Dundee.
- Jim Malley & Hassan Molana, 2001. "Monopolistic Competition, Efficiency Wages and Perverse Effects of Demand Shock," CESifo Working Paper Series 475, CESifo Group Munich.
- Jim Malley & Hassan Molana, 2000. "Monopolistic Competition, Efficiency Wages and Perverse Effects of Demand Shock," Working Papers 2000_20, Business School - Economics, University of Glasgow, revised Feb 2001.
- STROBL, Eric & WALSH, Frank, 2003.
"Estimating the shirking model with variable effort,"
CORE Discussion Papers
2003075, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Strobl, Eric & Walsh, Frank, 2007. "Estimating the shirking model with variable effort," Labour Economics, Elsevier, vol. 14(3), pages 623-637, June.
- Daron Acemoglu & Robert Shimer, 1999.
"Productivity Gains from Unemployment Insurance,"
NBER Working Papers
7352, National Bureau of Economic Research, Inc.
- Gordon, Robert J, 1995.
"Is There a Trade-off between Unemployment and Productivity Growth?,"
CEPR Discussion Papers
1159, C.E.P.R. Discussion Papers.
- Robert J. Gordon, 1995. "Is There a Tradeoff between Unemployment and Productivity Growth?," NBER Working Papers 5081, National Bureau of Economic Research, Inc.
- Francesco Daveri & Guido Tabellini, 2000.
"Unemployment, growth and taxation in industrial countries,"
CEPR;CES;MSH, vol. 15(30), pages 47-104, 04.
- Francesco Daveri & Guido Tabellini, . "Unemployment, Growth and Taxation in Industrial Countries," Working Papers 122, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Daveri, Francesco & Tabellini, Guido, 1997. "Unemployment, Growth and Taxation in Industrial Countries," CEPR Discussion Papers 1681, C.E.P.R. Discussion Papers.
- Malley, Jim & Moutos, Thomas, 2001.
" Capital Accumulation and Unemployment: A Tale of Two "Continents.","
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 103(1), pages 79-99, March.
- Jim Malley & Thomas Moutos, 2000. "Capital Accumulation and Unemployment: A Tale of Two "Continents"," CESifo Working Paper Series 236, CESifo Group Munich.
- Jim Malley & Thomas Moutos, . "Capital Accumulation and Unemployment: A Tale of Two 'Continents'," Working Papers 9820, Business School - Economics, University of Glasgow.
- Alison L. Booth & Yu-Fu Chen & Gylfi Zoega, 2002.
"Hiring and Firing: A Tale of Two Thresholds,"
Journal of Labor Economics,
University of Chicago Press, vol. 20(2), pages 217-248, Part.
- Carlin, Wendy & Soskice, David, 2005. "Macroeconomics: Imperfections, Institutions, and Policies," OUP Catalogue, Oxford University Press, number 9780198776222, March.
When requesting a correction, please mention this item's handle: RePEc:bla:germec:v:8:y:2007:i::p:561-577. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.