About this Economics, Econometrics and Finance article
Unemployment Invariance by Marika Karanassou; Dennis J. Snower is a Economics, Econometrics and Finance article available to read on EtoBox.
## Abstract This paper provides a critique of the ‘unemployment invariance hypothesis’, according to which the behavior of the labor market, by itself, ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity and the labor force. In the context of an endogenous growth model, we show that the labor market alone need not contain all the equilibrating mechanisms to ensure unemployment invariance; in particular, other markets may perform part of the equilibrating process as well. By implication, policies that raise the growth path of capital or increase the effective working-age population may influence the long-run unemployment rate.
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Marika Karanassou; Dennis J. Snower
- Publisher
- Walter de Gruyter GmbH
- Published
- 2004
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)