IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/1404.html
   My bibliography  Save this paper

An Empirical Evaluation of the Disequilibrium Real Wage Rate Hypothesis

Author

Listed:
  • Jacques R. Artus

Abstract

The rise in the share of labor costs invalue added in many industrial countries during the 1970s and early 1980s has led many observers to conclude that real wages are now too high and a source of "classical" unemployment. These conclusions are not necessarily valid. The increase in the labor share could be warranted by long-run changes in production techniques,in the price of energy, or in the relative availability of labor and capital. This paper uses a production function approach to examine these possibilities.

Suggested Citation

  • Jacques R. Artus, 1984. "An Empirical Evaluation of the Disequilibrium Real Wage Rate Hypothesis," NBER Working Papers 1404, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:1404
    Note: ITI IFM
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w1404.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bowden, Roger J, 1980. "On the Existence and Secular Stability of u-v Loci," Economica, London School of Economics and Political Science, vol. 47(185), pages 35-50, February.
    2. Martin Neil Baily, 1981. "Productivity and the Services of Capital and Labor," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 12(1), pages 1-66.
    3. Barry P. Bosworth, 1982. "Capital Formation and Economic Policy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 13(2), pages 273-326.
    4. Derek Blades, 1983. "Service Lives of Fixed Assets," OECD Economics Department Working Papers 4, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert Dixon & Guay C. Lim, 2018. "Labor'S Share, The Firm'S Market Power, And Total Factor Productivity," Economic Inquiry, Western Economic Association International, vol. 56(4), pages 2058-2076, October.
    2. Klodt, Henning, 1985. "Lohnquote und Beschäftigung - die Lohnlücke," Kiel Working Papers 230, Kiel Institute for the World Economy (IfW Kiel).
    3. Bentolila Samuel & Saint-Paul Gilles, 2003. "Explaining Movements in the Labor Share," The B.E. Journal of Macroeconomics, De Gruyter, vol. 3(1), pages 1-33, October.
    4. Robert J. Gordon, 1991. "Productivity, Wages, and Prices Inside and Outside of Manufacturing in the U.S., Japan, and Europe," NBER Chapters, in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 153-207, National Bureau of Economic Research, Inc.
    5. Paqué, Karl-Heinz, 1989. "Wage gaps, hysteresis and structural unemployment: The West German labour market in the seventies and eighties," Kiel Working Papers 358, Kiel Institute for the World Economy (IfW Kiel).
    6. Mr. Luis M. Cubeddu & Mr. Camilo E Tovar Mora & Ms. Evridiki Tsounta, 2012. "Latin America: Vulnerabilities Under Construction?," IMF Working Papers 2012/193, International Monetary Fund.
    7. Klodt, Henning, 1986. "Lohnquote und Beschäftigung - die Lohnlücke," Open Access Publications from Kiel Institute for the World Economy 1313, Kiel Institute for the World Economy (IfW Kiel).
    8. Charles Wyplosz, 1987. "La France en 1986 : bilan et perspectives macro-économiques," Revue Économique, Programme National Persée, vol. 38(3), pages 677-702.
    9. Nicoletta Batini & Brian Jackson & Stephen Nickell, 2000. "Inflation Dynamics and the Labour Share in the UK," Discussion Papers 02, Monetary Policy Committee Unit, Bank of England.
    10. Fischer, Bernhard & Spinanger, Dean, 1986. "Factor market distortions and export performance: An eclectic review of the evidence," Kiel Working Papers 259, Kiel Institute for the World Economy (IfW Kiel).
    11. R. Dixon & G.C. Lim, 2017. "Labor's Share, the Firm's Market Power and TFP," Melbourne Institute Working Paper Series wp2017n22, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    12. Paqué, Karl-Heinz, 1989. "Micro-macro links in West Germany's unemployment," Kiel Working Papers 378, Kiel Institute for the World Economy (IfW Kiel).
    13. Paqué, Karl-Heinz, 1990. "Unemployment in West Germany: A survey of explanations and policy options," Kiel Working Papers 407, Kiel Institute for the World Economy (IfW Kiel).
    14. Patrick Artus, 1987. "Salaire réel et emploi," Revue Économique, Programme National Persée, vol. 38(3), pages 625-660.
    15. Manfred Wegner, 1987. "Creating New Jobs in the Service Sector," The ANNALS of the American Academy of Political and Social Science, , vol. 492(1), pages 136-150, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jonathan Temple, 2002. "The Assessment: The New Economy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 18(3), pages 241-264.
    2. Sniekers, F.J.T., 2013. "Endogenous Beveridge cycles and the volatility of unemployment," CeNDEF Working Papers 13-12, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
    3. Alan S. Blinder & Jeremy B. Rudd, 2013. "The Supply-Shock Explanation of the Great Stagflation Revisited," NBER Chapters, in: The Great Inflation: The Rebirth of Modern Central Banking, pages 119-175, National Bureau of Economic Research, Inc.
    4. Reinhold Kosfeld & Christian Dreger & Hans-Friedrich Eckey, 2008. "On the stability of the German Beveridge curve: a spatial econometric perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(4), pages 967-986, December.
    5. AZOMAHOU, Théophile & BOUCEKKINE, Raouf & NGUYEN-VAN, Phu, 2009. "Promoting clean technologies under imperfect competition," LIDAM Discussion Papers CORE 2009011, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Howard J. Wall & Gylfi Zoega, 2002. "The British Beveridge curve: A tale of ten regions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(3), pages 257-276, July.
    7. Carsten Ochsen, 2009. "On the measurement of mismatch," Applied Economics Letters, Taylor & Francis Journals, vol. 16(4), pages 405-409.
    8. Ricardo A. Lagos, "undated". ""An Alternative Approach to Market Frictions: An Application to the Market for Taxicab Rides''," CARESS Working Papres 96-09, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
    9. Arnold J. Katz, 2008. "Accounting for Obsolescence: An Evaluation of Current NIPA Practice," BEA Papers 0089, Bureau of Economic Analysis.
    10. Pietro Garibaldi & Etienne Wasmer, 2005. "Equilibrium Search Unemployment, Endogenous Participation, And Labor Market Flows," Journal of the European Economic Association, MIT Press, vol. 3(4), pages 851-882, June.
    11. Eva, MORENO-GALBIS, 2004. "Unemployment and Endogenous Growth with Capital-Skill Complementarity," LIDAM Discussion Papers IRES 2004001, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    12. Carol Corrado & Charles Hulten & Daniel Sichel, 2005. "Measuring Capital and Technology: An Expanded Framework," NBER Chapters, in: Measuring Capital in the New Economy, pages 11-46, National Bureau of Economic Research, Inc.
    13. repec:hal:spmain:info:hdl:2441/8921 is not listed on IDEAS
    14. Agust'n Pérez-Barahona & Benteng Zou, 2006. "Energy-saving technological progress in a vintage capital model," Chapters, in: Carlos de Miguel & Xavier Labanderia & Baltasar Manzano (ed.), Economic Modelling of Climate Change and Energy Policies, chapter 11, pages 166-179, Edward Elgar Publishing.
    15. Raouf Boucekkine & Fernando del Río & Omar Licandro, "undated". "The importance of the embodied question revisited," Working Papers 99-13, FEDEA.
    16. Sami Alpanda & Adrian Peralta-Alva, 2010. "Oil Crisis, Energy-Saving Technological Change and the Stock Market Crash of 1973-74," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(4), pages 824-842, October.
    17. Fred Moseley, 1990. "The Decline of the Rate of Profit in the Postwar U.S. Economy: An Alternative Marxian Explanation," Review of Radical Political Economics, Union for Radical Political Economics, vol. 22(2-3), pages 17-37, June.
    18. Vasily Astrov & Mahdi Ghodsi & Richard Grieveson & Mario Holzner & Artem Kochnev & Michael Landesmann & Olga Pindyuk & Robert Stehrer & Maryna Tverdostup & Alexandra Bykova, 2022. "Russia’s invasion of Ukraine: assessment of the humanitarian, economic, and financial impact in the short and medium term," International Economics and Economic Policy, Springer, vol. 19(2), pages 331-381, May.
    19. Ana Rincon-Aznar & Rebecca Riley & Garry Young, 2017. "Academic Review of Asset Lives in the UK," National Institute of Economic and Social Research (NIESR) Discussion Papers 474, National Institute of Economic and Social Research.
    20. Louri, Helen, 1989. "Regional policy and investment behaviour: The case of Greece, 1971-1982," MPRA Paper 40229, University Library of Munich, Germany.
    21. Jerome Fahrer & Andrew Pease, 1993. "The Unemployment/Vacancy Relationship in Australia," RBA Research Discussion Papers rdp9305, Reserve Bank of Australia.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:1404. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.