Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/277302 
Year of Publication: 
2014
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 11 [Issue:] 2 [Year:] 2014 [Pages:] 182-194
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
This paper restates the post-Keynesian view of unemployment within a NAIRU framework. In the short run, the private effective labour demand need not be downward sloping because of debt deflation and wage-led demand regimes. In the medium run, the NAIRU will be endogenous because of the social norm character of wage setting and the supply-side effects of capital accumulation. Capital investment rather than labour market institutions is the crucial variable that explains changes in unemployment performance. We provide econometric evidence that the post-Keynesian view holds up well in the recession following the crisis of 2008.
Subjects: 
unemployment
NAIRU
post-Keynesian Economics
panel analysis
JEL: 
E12
E24
E25
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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