Falling labor share and rising unemployment: Long-run consequences of institutional shocks?

Arbeitspapier

The literature on unemployment has mostly focused on labor market issues while the impact of capital formation is largely neglected. Job-creation is often thought to be a matter of encouraging more employment on a given capital stock. In contrast, this paper explicitly deals with the long-run consequences of institutional shocks on capital formation and employment. It is shown that the usual trade off between employment and wages disappears in the long run. In line with an appropriation model, the estimated values for the long-run elasticities of substitution between capital and labor for Germany and France are substantially greater than one.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Wirtschaftswissenschaftliche Beiträge ; No. 30

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Production ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Aggregate Factor Income Distribution
• Subject: Unemployment ; Institutional Shocks ; Appropriation ; Elasticity of Substitution ; Technical Change ; Arbeitslosigkeit ; Lohnquote ; Schock ; Arbeitsmarkt ; Institutioneller Wandel ; Faktorsubstitution ; Kapitalintensität ; Wirtschaftswachstum ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Berthold, Norbert ; Fehn, Rainer ; Thode, Eric
• Event: Veröffentlichung
• (who): Bayerische Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, Wirtschaftsordnung und Sozialpolitik
• (where): Würzburg
• (when): 1999

Further information

• Handle: http://hdl.handle.net/10419/32501
• Last update: 10.03.2025, 11:42 AM CET