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This study examines whether health care is affected by Baumol’s cost disease in a scenario of no growth. Baumol's model implies that stagnant sectors are driven by wage increases in excess of productivity growth. But in a no growth economy the income is constant. It is investigated in two...
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. -- Endogenous growth theory ; firm dynamics ; labor market regulation ; firing costs ; entry and exit ; firm selection …This paper analyzes the effect of firing costs on aggregate productivity growth. For this purpose, a model of … firms, and is sustained as entrants imitate the best incumbents. In this framework, firing costs not only induce …
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