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http://hdl.handle.net/10419/3111
  
Title:Unemployment invariance PDF Logo
Authors:Karanassou, Marika
Snower, Dennis J.
Issue Date:2002
Series/Report no.:Working paper series, Department of Economics, Queen Mary College, London 476
Abstract:This paper provides a critique of the "unemployment invariance hypothesis", according to which the behavior of the labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity and the labor force. Using Solow growth and endogenous growth models, we show that the labor market alone need not contain all the equilibrating mechanisms to ensure unemployment invariance; in particular, other markets may perform part of the equilibrium process as well. By implication, policies that raise the growth path of capital or increase the effective working-age population may influence the long-run unemployment rate.
Subjects:Unemployment , employment , wage determination , labor supply , capital accumulation , productivity , technological change , economic growth
JEL:J38
J30
J23
J21
J68
J64
Document Type:Working Paper
Appears in Collections:Working Paper Series, School of Economics and Finance, Queen Mary, University of London
Publikationen von Forscherinnen und Forschern des IfW

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