On the links between unemployment rate, monetary creation and the value-added sharing

In this paper, we investigate the analytical links between the rate of unemployment, monetary creation and how individuals share the value added in an economy with three types of agents: capital owners, managers and employees. This relationship relies on the fact that the rate of unemployment depends on many macroeconomic characteristics such as: creation of money, external balance of goods and services and mark-up pricing. The latter being decomposed into the expected margin rate and the growth rate of the unitary wage cost that characterize the primary value-added sharing.

Research Highlights► We propose an axiomatic-based model in which agents may play three different roles: capital owner, manager and employee; those three roles are connected with into a particular hierarchy and the repartition of the value added depends on conflicts between these three types of agents. We then provide an interpretation of Obama's inauguration speech: “Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some [. . .].”