Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21479
Authors: 
Gersbach, Hans
Schniewind, Achim
Year of Publication: 
2002
Series/Report no.: 
IZA Discussion paper series 478
Abstract: 
In a two-sector-economy with real wage rigidity, we examine how technical progress in one sector affects aggregate unemployment. We show that aggregate unemployment decreases for uneven technical change in the case of Cobb-Douglas production functions. For every type of technical progress there are also elasticities of substitution in production and utility functions leading to a rise in unemployment. Moreover, we identify polar cases when unemployment strongly decreases.
Subjects: 
uneven technical progress
elasticities of substitution
unemployment
JEL: 
E24
D58
L13
J60
Document Type: 
Working Paper

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