A common belief of mainstream economics as well as underpinning government policy is that the more flexible real wage is, the lower is unemployment. In this paper we study the dynamics of a standard neoclassical labour market under the simplest Walrasian adjustment rule. We show that when...

The issue of the onset of Malthusian cycles is investigated by means of a demo-economic model incorporating the age structure of the population. It is shown that the delayed recruitment into the labour force is a major source of demo-economic instability, potentially leading to sustained...

In this paper we investigate the dynamic interaction between economic growth, unemployment, income distribution and population growth. The reference framework combines rational behaviour of agents with endogenous fertility and unemployment, while profits are the determinant of the accumulation...

In this paper we study the effects of raising the mandatory retirement age in the neoclassical growth model context. It is shown that postponement of the retirement age may be harmful for long-run income and even for pensions. Our findings show that the retirement age might be reduced, thereby...

We re-examine the issue of optimal population in the basic overlapping generations model of neoclassical growth with endogenous fertility and time cost of children in both closed and small open economies. In the former case, we show that the golden rule of population growth can be achieved by a...