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Learning for Employment, Innovating for Growth

  • Josef Falkinger
  • Josef Zweimueller

We present a model in which workers must be educated to get a good job and firms must innovate in order to increase productivity. Education as well as innovation and production require skilled labor as inputs. This, together with the fact that learning opportunities differ across workers, determine simultaneously the long-run level of skilled employment and the long-run rate of growth. We study the impact of changes in the factors which affect the education of workers and the incentives to innovate, and discuss the growth and employment effects of labor market policy measures.

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Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 156 (2000)
Issue (Month): 3 (September)
Pages: 455-

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200009)156:3_455:lfeifg_2.0.tx_2-8
Contact details of provider: Web page: http://www.mohr.de/jite

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  1. Cahuc, P. & Michel, P., 1992. "Minimum Wage, Unemployment and Growth," Papiers d'Economie Mathématique et Applications 92.35, Université Panthéon-Sorbonne (Paris 1).
  2. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Wiley Blackwell, vol. 60(1), pages 35-52, January.
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  5. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, June.
  6. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  7. Eicher, Theo S, 1996. "Interaction between Endogenous Human Capital and Technological Change," Review of Economic Studies, Wiley Blackwell, vol. 63(1), pages 127-44, January.
  8. Arnold, Lutz G., 1998. "Growth, Welfare, and Trade in an Integrated Model of Human-Capital Accumulation and Research," Journal of Macroeconomics, Elsevier, vol. 20(1), pages 81-105, January.
  9. Atkinson, A-B, 1996. "Bringing Income Distribution in from the Cold," Economics Papers 117, Economics Group, Nuffield College, University of Oxford.
  10. Bean, Charles & Pissarides, Christopher, 1993. "Unemployment, consumption and growth," European Economic Review, Elsevier, vol. 37(4), pages 837-854, May.
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