Loading...
Unemployment and endogenous growth
van Schaik,A.B.T.M. de Groot,H.L.F.
van Schaik,A.B.T.M.
de Groot,H.L.F.
Abstract
In this paper we develop a two-sector endogenous growth model with a dual labour market, based on efficiency wages. Growth is driven by intentional R&D performed in the high-tech and high-wage sector. It is examined how a change in rivalry among firms affects simultaneously growth and unemployment. On the one hand, an increase of the elasticity of substitution between the product varieties of different high-tech firms reduces market power and leads to higher growth but reduces job prospects. On the other hand, if barriers to entry exist, an increase of the number of rivals in the market (due to removal of entry barriers) leads to lower growth, whereas the effect on aggregate employment is ambiguous.
Description
Pagination: 30
Date
1995
Journal Title
Journal ISSN
Volume Title
Publisher
Unknown Publisher
Files
Loading...
75.pdf
Adobe PDF, 497.66 KB
Research Projects
Organizational Units
Journal Issue
Keywords
Economic Growth, Wages, Unemployment, Labour Market, Growth Models, labour economics, E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity, O41 - One, Two, and Multisector Growth Models, J21 - Labor Force and Employment, Size, and Structure, D40 - General, J40 - General, SDG 1 - No Poverty, SDG 8 - Decent Work and Economic Growth
Citation
van Schaik, A B T M & de Groot, H L F 1995 'Unemployment and endogenous growth' CentER Discussion Paper, vol. 1995-75, Unknown Publisher.
License
info:eu-repo/semantics/restrictedAccess