2026-04-17T07:41:48Zhttps://recercat.cat/oai/requestoai:recercat.cat:2445/1203092025-11-20T10:15:56Zcom_2072_1057col_2072_478809col_2072_478917
RECERCAT
author
Raurich, Xavier
author
Sorolla, Valeri
2018-02-28T07:05:08Z2018-02-28T07:05:08Z20142018-02-28T07:05:08Z
We introduce wage setting via efficiency wages in the neoclassical one-sector growth model to study the growth effects of wage inertia. We compare the dynamic equilibrium of an economy with wage inertia with the equilibrium of an economy without it. We show that wage inertia affects the long run employment rate and that the transitional dynamics of the main economic variables will be different because wages are a state variable when wage inertia is introduced. In particular, we show that the model with wage inertia can explain some growth patterns that cannot be explained when wages are flexible. We also study the growth effects of permanent technological and fiscal policy shocks in these two economies. During the transition, the growth effects of technological shocks obtained when wages exhibit inertia may be the opposite of those obtained when wages are flexible. These technological shocks may have long run effects if there is wage inertia.
(c) Elsevier, 2014 info:eu-repo/semantics/openAccess
Mercat de treball
Atur
Dret al treball
Política de plena ocupació
Creixement econòmic
Labor market
Unemployment
Right to labor
Full employment polices
Economic growth
Growth, unemployment and wage inertia
info:eu-repo/semantics/article info:eu-repo/semantics/acceptedVersion