Quotation Zagler, Martin. 2009. Economic growth, structural change, and search unemployment. Journal of Economics. Zeitschrift für Nationalökonomie 96 (1): 63-79.


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Abstract

Economic growth is driven by structural change. Structural change does not come without a cost. The most evident social cost of structural change is high and persistent unemployment. This paper develops a model with an endogenously expanding service sector, where the constant flow of workers in and out of employment leads to structural unemployment. The main finding is that the level of unemployment is different between the initial period and the long-run equilibrium growth path, and that along the transition path, the level of unemployment will overshoot its equilibrium level, which can explain the long-run pattern of unemployment in most industrialized countries.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Economics (J Econ)
Citation Index SSCI
WU Journalrating 2009 A
Language English
Title Economic growth, structural change, and search unemployment
Volume 96
Number 1
Year 2009
Page from 63
Page to 79
Reviewed? Y
URL http://www.springerlink.com/content/u746681485u75636/

Associations

Projects
Growth and Cylces
People
Zagler, Martin (Details)
Organization
Department of Economics (Crespo Cuaresma) (Details)
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