Growth, Unemployment and Wage Inertia

Research, Article, Preprint OPEN
Raurich, Xavier; Sorolla Amat, Valeri;
  • Publisher: Elsevier
  • Identifiers: handle: 10261/39888, doi: 10.1016/j.jmacro.2014.02.007
  • Subject: Right to labor | Full employment policies | Dret al treball | Economic growth | Labor market | wage inertia, growth, efficiency wages, transitional dynamics, unemployment | Wage inertia | Creixement econòmic | Full employment polices | Efficiency wages | Mercat de treball | Política de plena ocupació | Unemployment Right lo labor | Salaris | Desenvolupament econòmic | Transitional dynamics | Unemployment | Growth | wage inertia, growth, efficiency wages, transitional dynamics, unemployment. | Atur
    • jel: jel:O41
    arxiv: Computer Science::Computers and Society | Mathematics::History and Overview | Physics::Physics and Society | Statistics::Applications

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 wage inertia. We show th... View more
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