Reference : Frictional unemployment, labor market institutions, and endogenous economic growth
Scientific journals : Article
Business & economic sciences : Macroeconomics & monetary economics
http://hdl.handle.net/10993/12262
Frictional unemployment, labor market institutions, and endogenous economic growth
English
Irmen, Andreas mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)]
2009
Economics Bulletin
29
2
1127-1138
Yes
International
[en] Frictional Unemployment ; Endogenous Economic Growth
[en] For a given set of labor market institutions, the rate of frictional unemployment depends on the evolution of the pool of job-seekers. Unemployment rises with the growth rate of labor supply that is proportionate to the rate of population growth. If economic growth is semi-endogenous, the steady-state growth rate depends positively on the rate of population growth. This suggests a trade-off between growth and unemployment: a faster growing economy has a higher unemployment rate. As a consequence, faster growth may not be desirable from a welfare point of view. We make this point in a parsimonious setting where semi-endogenous growth derives from the division of labor and the associated gains from specialization.
Researchers ; Professionals ; Students
http://hdl.handle.net/10993/12262
http://ideas.repec.org/a/ebl/ecbull/eb-08o30011.html

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