Equilibrium Unemployment with Capital Investments under Labour Market Imperfections

Erkki Koskela, Rune Stenbacka, Mikael Juselius

Tutkimustuotos: ArtikkelijulkaisuArtikkeliTieteellinenvertaisarvioitu

Kuvaus

We study the effects of labour market imperfections and the capital stock on equilibrium unemployment. With an exogenous capital-labour ratio, stronger labour market imperfections promote equilibrium unemployment. However, the relationship between the long-run unemployment and the capital stock is not monotonic. With sufficiently strong (weak) labour market imperfections capital investment has a wage-moderating (wage-increasing) effect, thereby decreasing (increasing) equilibrium unemployment. Empirically we find dispersed long-run effects of capital on unemployment, using 28 years of quarterly data, in 16 OECD countries. A significant part of this dispersion can be explained by differences in labour market conditions among the countries.
Alkuperäiskielienglanti
LehtiFinnish Economic Papers
Vuosikerta26
Numero2
Sivut72-94
Sivumäärä23
ISSN0784-5197
TilaJulkaistu - joulukuuta 2013
OKM-julkaisutyyppiA1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä, vertaisarvioitu

Tieteenalat

  • 511 Kansantaloustiede

Lainaa tätä

Koskela, Erkki ; Stenbacka, Rune ; Juselius, Mikael. / Equilibrium Unemployment with Capital Investments under Labour Market Imperfections. Julkaisussa: Finnish Economic Papers. 2013 ; Vuosikerta 26, Nro 2. Sivut 72-94.
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Equilibrium Unemployment with Capital Investments under Labour Market Imperfections. / Koskela, Erkki; Stenbacka, Rune; Juselius, Mikael.

julkaisussa: Finnish Economic Papers, Vuosikerta 26, Nro 2, 12.2013, s. 72-94.

Tutkimustuotos: ArtikkelijulkaisuArtikkeliTieteellinenvertaisarvioitu

TY - JOUR

T1 - Equilibrium Unemployment with Capital Investments under Labour Market Imperfections

AU - Koskela, Erkki

AU - Stenbacka, Rune

AU - Juselius, Mikael

PY - 2013/12

Y1 - 2013/12

N2 - We study the effects of labour market imperfections and the capital stock on equilibrium unemployment. With an exogenous capital-labour ratio, stronger labour market imperfections promote equilibrium unemployment. However, the relationship between the long-run unemployment and the capital stock is not monotonic. With sufficiently strong (weak) labour market imperfections capital investment has a wage-moderating (wage-increasing) effect, thereby decreasing (increasing) equilibrium unemployment. Empirically we find dispersed long-run effects of capital on unemployment, using 28 years of quarterly data, in 16 OECD countries. A significant part of this dispersion can be explained by differences in labour market conditions among the countries.

AB - We study the effects of labour market imperfections and the capital stock on equilibrium unemployment. With an exogenous capital-labour ratio, stronger labour market imperfections promote equilibrium unemployment. However, the relationship between the long-run unemployment and the capital stock is not monotonic. With sufficiently strong (weak) labour market imperfections capital investment has a wage-moderating (wage-increasing) effect, thereby decreasing (increasing) equilibrium unemployment. Empirically we find dispersed long-run effects of capital on unemployment, using 28 years of quarterly data, in 16 OECD countries. A significant part of this dispersion can be explained by differences in labour market conditions among the countries.

KW - 511 Economics

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VL - 26

SP - 72

EP - 94

JO - Finnish Economic Papers

JF - Finnish Economic Papers

SN - 0784-5197

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