Mizobuchi, Hideyuki - In: Journal of Economic Structures 4 (2015), pp. 1-12
show that ULC is wage divided by labor productivity. Thus, changes in ULC are often discussed in the context of wage … increases and labor productivity. However, a higher wage induces firms to substitute labor with capital, which affects labor … productivity. However, the conventional decomposition of changes in ULC dismisses this indirect impact of wage on ULC through labor …