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Growth Models with Exogenous Saving Rates, Unemployment and Wage Inertia

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  • Xavier Raurich (Universitat de Barcelona)
  • Valeri Sorolla (Universitat Autonoma de Barcelona)

    (Universitat de Barcelona)

Abstract

The purpose of this paper is to introduce a noncompetitive labor market and unemployment into the growth models with exogenous saving rates found in economic growth textbooks (SalaiMartin, 2000; Barro and SalaiMartin, 2003; Romer, 2006). We first derive a general framework with a neoclassical production function to analyze the relationship between growth and employment. We use this framework to study the joint dynamics of growth and employment when different wage setting rules are considered

Suggested Citation

  • Xavier Raurich (Universitat de Barcelona) & Valeri Sorolla (Universitat Autonoma de Barcelona), 2012. "Growth Models with Exogenous Saving Rates, Unemployment and Wage Inertia," Working Papers in Economics 287, Universitat de Barcelona. Espai de Recerca en Economia.
    • Handle: RePEc:bar:bedcje:2012287
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    Cited by:

    1. Riada Berhani, 2015. "Economic Growth and Openness in Transition: A Study of Western Balkans," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 4, March.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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