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Unions, Dutch Disease and Unemployment

  • Chatterji, Monojit
  • Price, Simon

Models are needed that can explain both the recent structural chang e in the U.K. economy and the possibility that this might have long-r un effects on unemployment. The major results are that arise in material prices is likely to increase long-run unemployment for countries that are net importers of materials, but might lower it for net exporters; that the discovery of a resource like North Sea oil lowers equilibrium unemployment; and that a model with exogenous "union" wages cannot predict the observed pattern of deindustrialization after an oil discovery, but one with an endogenous union wage may. Copyright 1988 by Royal Economic Society.

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Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 40 (1988)
Issue (Month): 2 (June)
Pages: 302-21

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Handle: RePEc:oup:oxecpp:v:40:y:1988:i:2:p:302-21
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