International Labour Market Regulation and Economic Growth with Creative Destruction

Arbeitspapier

A multi-country Schumpeterian growth model is constructed when there is world-wide externality in technological knowledge. Households can enter the labour force as workers or become engineers at some cost. Production employs both workers and engineers while R&D uses only engineers. Workers are unionized and labour market regulation supports union power in wage bargaining. It is shown that international coordination of labour market policy increases the growth rate and the level of welfare. When the interest-rate elasticity of consumption in the world is low (high), the simultaneous regulation (deregulation) of the labour market in all countries increases welfare.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 768

Classification and Topics

• Classification: Wirtschaft
• Subject: international technology transfers ; labour market regulation ; endogenous growth

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Palokangas, Tapio
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/76056
• Last update: 10.03.2025, 11:42 AM CET