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From the Malthusian to the Modern Growth Regime in an OLG Model with Unions


  • Luca Gori

    () (University of Pisa)

  • Luciano Fanti

    () (University of Pisa)


The passage from the Malthusian Regime to the Modern Regime has been theoretically investigated only in recent times and the understanding of this process is still incomplete. This paper develops a neoclassical OLG model of neoclassical growth which embodies a stylised fact emerged in the second half of the XIX century, especially in European countries, that is the unionisation of labour markets and the diffusion of unemployment insurance systems. The results of this paper suggest that, differently from the previous literature, the diffusion of trade unions - which, causing a simultaneous increase of wages and unemployment, on the one hand reversed the effects of wage on fertility and on the other hand enhanced savings, capital accumulation and output in the long-run - may have triggered or at least favoured the passage.

Suggested Citation

  • Luca Gori & Luciano Fanti, 2007. "From the Malthusian to the Modern Growth Regime in an OLG Model with Unions," Economics Bulletin, AccessEcon, vol. 10(14), pages 1-10.
  • Handle: RePEc:ebl:ecbull:eb-07j50002

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    References listed on IDEAS

    1. Galor, Oded, 2005. "From Stagnation to Growth: Unified Growth Theory," Handbook of Economic Growth,in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 4, pages 171-293 Elsevier.
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    5. David N. Weil & Oded Galor, 1999. "From Malthusian Stagnation to Modern Growth," American Economic Review, American Economic Association, vol. 89(2), pages 150-154, May.
    6. de la Croix,David & Michel,Philippe, 2002. "A Theory of Economic Growth," Cambridge Books, Cambridge University Press, number 9780521001151, May.
    7. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
    8. Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 1-25.
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    Cited by:

    1. repec:zbw:rwirep:0165 is not listed on IDEAS
    2. Schmidt, Torsten & Vosen, Simeon, 2013. "Demographic change and the labour share of income," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 357-378.
    3. Luca Spataro & Luciano Fanti, 2013. "From Malthusian to Modern fertility: When intergenerational transfers matter," Discussion Papers 2013/163, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    4. Torsten Schmidt & Simeon Vosen, 2010. "Demographic Change and the Labour Share of Income," Ruhr Economic Papers 0165, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Luca Spataro, Luciano Fanti and Pier Mario Pacini, 2017. "Savings, fertility and public policy in an OLG small open economy," Discussion Papers 2017/230, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    6. Luciano Fanti, 2009. "Longevity, fertility and Demographic Transition in an OLG model," Economics Bulletin, AccessEcon, vol. 29(1), pages 347-356.

    More about this item


    Economic Growth;

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity


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