dc.contributor.author
Raurich, Xavier
dc.contributor.author
Sorolla, Valeri
dc.date.issued
2014-09-15T10:43:14Z
dc.date.issued
2014-09-15T10:43:14Z
dc.date.issued
2014-09-15T10:43:17Z
dc.identifier
https://hdl.handle.net/2445/57169
dc.description.abstract
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.
dc.format
application/pdf
dc.publisher
Universitat de Barcelona. Facultat d'Economia i Empresa
dc.relation
Reproducció del document publicat a: http://www.ub.edu/ubeconomics/growth-unemployment-and-wage-inertia/
dc.relation
UB Economics – Working Papers, 2014, E14/309
dc.relation
[WP E-Eco14/309]
dc.rights
cc-by-nc-nd, (c) Raurich et al., 2014
dc.rights
http://creativecommons.org/licenses/by-nc-nd/3.0/
dc.rights
info:eu-repo/semantics/openAccess
dc.source
UB Economics – Working Papers [ERE]
dc.subject
Mercat de treball
dc.subject
Dret al treball
dc.subject
Política de plena ocupació
dc.subject
Creixement econòmic
dc.subject
Unemployment Right lo labor
dc.subject
Full employment policies
dc.subject
Economic growth
dc.title
Growth, unemployment and wage inertia [WP]
dc.type
info:eu-repo/semantics/workingPaper
