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Sectoral Changes in Employment: An eclectic perspective on 'good' jobs and 'poor' jobs

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  • Ingrid Rima

Abstract

The linkage Keynes established between the volume of employment that business firms require to make a particular number of jobs available provides an operational perspective about the way in which labor markets work. The aggregate supply or Z function is, in fact, a job offer curve. The most significant insight to derive from this curve is that job offers are inseparable from the economy's aggregate expenditure (or demand) level. This interdependency of aggregate supply and aggregate demand is necessary to understand the functioning of labor markets in the real world. This paper argues that a disaggregated model which encapsulates the economy's price-taking and price-making sectors offers a promising analytical tool to gain perspective about 'good jobs' and 'poor jobs' in post-Fordist economies. It is maintained that the sectoral deployment of workers reflects whether employing firms, as price-makers, can capture the increasing returns inherent in modern technology.

Suggested Citation

  • Ingrid Rima, 2000. "Sectoral Changes in Employment: An eclectic perspective on 'good' jobs and 'poor' jobs," Review of Political Economy, Taylor & Francis Journals, vol. 12(2), pages 171-190.
  • Handle: RePEc:taf:revpoe:v:12:y:2000:i:2:p:171-190 DOI: 10.1080/095382500406495
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    References listed on IDEAS

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    1. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 1-9.
    2. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 76-108, Part II, .
    3. Paul Davidson, 1994. "Post Keynesian Macroeconomic Theory," Books, Edward Elgar Publishing, number 124, September.
    4. Davidson, Paul, 1972. "Money and the Real World," Economic Journal, Royal Economic Society, vol. 82(325), pages 101-115, March.
    5. Muellbauer, John, 1976. "Community Preferences and the Representative Consumer," Econometrica, Econometric Society, vol. 44(5), pages 979-999, September.
    6. O. Eckstein, 1968. "Money Wage Determination Revisited," Review of Economic Studies, Oxford University Press, vol. 35(2), pages 133-143.
    7. Arestis, Philip & Driver, Ciaran, 1987. "The effects of income distribution on consumer imports," Journal of Macroeconomics, Elsevier, pages 83-94.
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