Why Does Unemployment Persist?
The main movements of unemployment correspond to fluctuations in the short-run non-accelerating-inflation rate of unemployment (around a stable long-term non-accelerating-inflation rate of unemployment). These supply-side fluctuations have two main origins: (1) variations in the number of "insiders" involved in wage-setting; and (2) variations in the effectiveness of the unemployed "outsiders" as potential job-seekers. The evidence of micro studies suggests that (2) is more important than (1), and this also helps to explain the widespread shift outwards in the u/v curve. To derive these arguments rigorously, the paper presents a simple model of efficiency wages, another of collective bargaining, and finally a fully dynamic model with labor market flows. Copyright 1989 by The editors of the Scandinavian Journal of Economics.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1988|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +44 (020) 7405 7686
Web page: http://www.lse.ac.uk/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:fth:lseple:321. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If references are entirely missing, you can add them using this form.