| Title: |
Endogenous Growth, Efficiency Wages and Persistent Unemployment |
| Authors: |
Martin Zagler; Jel-code O |
| Contributors: |
The Pennsylvania State University CiteSeerX Archives |
| Source: |
http://epub.wu.ac.at/1456/1/document.pdf. |
| Publication Year: |
1999 |
| Collection: |
CiteSeerX |
| Subject Terms: |
Endogenous Growth; Product Innovation; Equilibrium Unemployment; Efficiency Wages |
| Description: |
This paper establishes theoretical relations between the level of unemployment and the economic growth rate. In a model with a monopolistically competitive manufacturing sector and a competitive innovation sector, which both pay efficiency wages, we find that the unemployment rate exhibits an unambiguously negative impact on the long-run growth performance, as it reduces the innovative capacity of the economy. Only if efficiency levels are different across sectors, we can also establish a causal relation from the growth rate to the rate of unemployment, since less innovation shifts the burden to induce efficiency towards the manufacturing sector, thus fostering unemployment. |
| Document Type: |
text |
| File Description: |
application/pdf |
| Language: |
English |
| Relation: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.534.1881; http://epub.wu.ac.at/1456/1/document.pdf |
| Availability: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.534.1881; http://epub.wu.ac.at/1456/1/document.pdf |
| Rights: |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: |
edsbas.44AC324A |
| Database: |
BASE |