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Natural rate theory has dominated interpretations of economic trends and policy prescriptions over many decades, as economists contrasted high unemployment and lower inequality in Europe with the great American job machine. This paper discusses the relationship between skill structure and wage...
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pressure to rationalise. Greater rationalisation should, however, have led to an increase in labour productivity, but this has … not happened in the Federal Republic of Germany nor in a series of other major industrial countries. Instead, there has … been a marked slowdown in the rate of productivity advance. Why is this, and what is the outlook for the future? …
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