Unemployment invariance

Arbeitspapier

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 models, we show that the labor market need not contain all the equilibrating mechanisms to ensure unemployment invariance and that other markets may perform part of the equilibrating process as well. By implication, policies that stimulate investment and R&D and policies that affect the size of the labor force may influence the long-run unemployment rate. Layard-Nickell-Jackman ?invariance condition? for labor market systems. This condition is meant to ensure that unemployment is not trended in response to growth in the capital stock, the labor force, or productivity.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 530

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Labor Force and Employment, Size, and Structure ; Mobility, Unemployment, and Vacancies: Public Policy ; Unemployment: Models, Duration, Incidence, and Job Search ; Wages, Compensation, and Labor Costs: Public Policy ; Wages, Compensation, and Labor Costs: General ; Labor Demand
• Thema: employment ; wage determination ; labor supply ; capital accumulation ; productivity ; technological change ; economic growth ; unemployment ; Natürliche Arbeitslosigkeit ; Arbeitsmarkttheorie ; Investition ; Technischer Fortschritt ; Wachstumstheorie ; Neue Wachstumstheorie ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Karanassou, Marika ; Snower, Dennis J.
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2002

Weitere Informationen

• Handle: http://hdl.handle.net/10419/2802
• Letzte Aktualisierung: 20.09.2024, 08:22 MESZ