Growth, Training Leave and Unemployment
This paper analyzes the effects of a training leave benefit in a two sector model of endogenous growth, where unemployment is created by the existence of monopoly labor unions. There is a final goods sector and an education sector that provides the facilities to up-grade the skills of the labor force. The main result is that it is optimal to charge a tuition fee instead of giving a benefit in an economy with involuntary unemployment caused by monopoly labor unions. Furthermore, it is only welfare improving to undertake growth enhancing measures as long as the tuition fee is bigger than its optimal level. Moreover, an increase in the training leave benefit leads to a higher rate of balanced growth and at the same time to a lower rate of unemployment. Finally, an increase in the training leave benefit leads to the same transitional dynamics in the consumption-capital and the capital-labor ratio as an increase in the labor income tax, but the latter has a negative growth rate effect.
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:|
|Contact details of provider:|| Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark|
Phone: (+45) 3532 4411
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk/epru/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:kud:epruwp:98-14. 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 Hoffmann)
If references are entirely missing, you can add them using this form.