This article focuses on the growth-employment relationship and the determinants of labour force participation rate. In the time-series framework, employment is seen to have a greater impact on GDP rather than vice versa. This is quite consistent with the literature that employment contracts can...

We develop a model which shows that wages, prices and real income should grow faster in countries with low increase in their labour force. If not, other countries experience growing unemployment and/or trade deficit. This result is applied to the case of Germany, which has displayed a...