Technical Change in a Model with Fair Wages and Unemployment
Titel:
Technical Change in a Model with Fair Wages and Unemployment
Auteur:
Rapanos, Vassilis T.
Verschenen in:
International economic journal
Paginering:
Jaargang 10 (1996) nr. 4 pagina's 99-121
Jaar:
1996
Inhoud:
The purpose of this paper is to reconsider the results of the standard neoclassical theory of international trade regarding the effects of technical Change. We adopt a fair wage hypothesis, by postulating a work effort function, which depends on the relative returns to labor and capital, and the level of unemployment. Our analysis shows that the results of the standard analysis, initiated by Findlay and Grubert, may be altered considerably, Technical change may significantly affect involuntary unemployment, which is endogenously determined by the system, in contrast with most of the studies based on the standard model. [F11, O33]
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