Hellwig, Martin; Irmen, Andreas - Sonderforschungsbereich 504 "Rationalitätskonzepte, …; … - 1999
This paper studies the impact of wage growth on the evolution of employment in an intertemporal general-equilibrium model with endogenous productivity growth. For real wage growth above laissez-faire levels, we obtain steady-state equilibria in which productivity grows at the same rate as wages,...