Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10477938 | Journal of Macroeconomics | 2005 | 23 Pages |
Abstract
This paper compares the effects of different labor market institutions on economic growth and employment. In the general equilibrium model here presented, a mechanism causing persistence (on-the-job training) interacts with the strategic complementary between investors' decisions on capital accumulation and workers' decisions on labor-market participation. Within this framework (i) structurally and institutionally similar economies preserve forever their differences in output and employment levels, (ii) the steady-state growth rate is higher in an economy with competitive wage determination than in an unionized economy, (iii) this growth differential enlarges when the product and the capital markets of these two economies are integrated.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Luigi Bonatti,