Efficiency-wage unemployment and endogenous growth

Arbeitspapier

This paper examines positive and normative implications of efficiency-wage induced unemployment within a model of endogenous growth. Sectorspecific impacts of the wage rate on labor efficiency establish a correlation between the growth rate and the rate of unemployment. The sign of this correlation is shown to be given by the intersectoral wage differential. Despite the existence of unemployment, decisive positive properties of the full-employment model are preserved. However, welfare implications of the full-employment model may be reversed. The optimal policy can be to reduce growth, while at the same time raising unemployment.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionsbeiträge - Serie I ; No. 295

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Economic Growth and Aggregate Productivity: General
• Subject: innovation-based growth ; unemployment ; efficiency wages

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Meckl, Jürgen
• Event: Veröffentlichung
• (who): Universität Konstanz, Fakultät für Wirtschaftswissenschaften und Statistik
• (where): Konstanz
• (when): 1999

Further information

• Handle: http://hdl.handle.net/10419/68908
• Last update: 10.03.2025, 11:44 AM CET