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inequality and employment. To this end, we use annual data for the US, UK and Sweden over the past forty years and estimate … contributions of the labour share to the trajectories of inequality and employment during specific time intervals in the post-1990 … years. We find that during the nineties the cost of a one percent increase in employment was in the range of 0 …
Persistent link: https://www.econbiz.de/10010286279
investigates its impact on the evolution of employment. Whilst maintaining the assumption of a unitary long-run elasticity of wages … stylised labour demand equation and show that the labour share is a driving force of employment. We substantiate our analytical … exposition by providing empirical models of wage setting and employment equations for France, Germany, Italy, Japan, Spain, the …
Persistent link: https://www.econbiz.de/10010280741
This paper provides a critique of the "unemployment invariance hypothesis", according to which the behavior of the labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity and the labor force. Using Solow growth and endogenous growth...
Persistent link: https://www.econbiz.de/10010281026
This paper examines the movements in EU unemployment from two perspectives: a) the NRU/NAIRU perspective, in which unemployment movements are attributed largely to changes in the long-run equilibrium unemployment rate and (b) the chain-reaction perspective, in which unemployment movements are...
Persistent link: https://www.econbiz.de/10010281027
This paper adresses the various methodological issues surrounding vector autoregressions, simultaneous equations, and chain reactions, and provides new evidence on the long-run inflation-unemployment tradeoff in the US. It is argued that money growth is a superior indicator of the monetary...
Persistent link: https://www.econbiz.de/10010280760
This paper offers a reappraisal of the inflation-unemployment tradeoff, based on "frictional growth," describing the interplay between nominal frictions and money growth. When the money supply grows in the presence of price inertia (due to staggered wage contracts with time discounting), the...
Persistent link: https://www.econbiz.de/10010281025
This paper analyses the relation between US inflation and unemployment from the perspective of "frictional growth," a phenomenon arising from the interplay between growth and frictions. In particular, we examine the interaction between money growth (on the one hand) and various real and nominal...
Persistent link: https://www.econbiz.de/10010281030