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Economic Growth, Structural Change, and Search Unemployment

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  • Zagler, M.

Abstract

Economic growth is driven by structural change. Structural change doer not come without a cost, the most evident social cost being high and persistent unemployment. This paper develops an economy with an endogenously expanding service sector, where the constant flow of workers in and out of employment relation leads to structural unemployment.

Suggested Citation

  • Zagler, M., 2000. "Economic Growth, Structural Change, and Search Unemployment," Economics Working Papers eco2000/16, European University Institute.
    • Handle: RePEc:eui:euiwps:eco2000/16
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    References listed on IDEAS

    as
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    10. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    11. Enrique R. Casares, 2007. "Productivity, Structural Change in Employment and Economic Growth," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 22(2), pages 335-355.
    12. Cahuc, Pierre & Michel, Philippe, 1996. "Minimum wage unemployment and growth," European Economic Review, Elsevier, vol. 40(7), pages 1463-1482, August.
    13. Saviotti, Pier Paolo & Pyka, Andreas, 2004. "Economic development, qualitative change and employment creation," Structural Change and Economic Dynamics, Elsevier, vol. 15(3), pages 265-287, September.
    14. Richard A. Breche & Zhiqi Chen & Ehsan U. Choudhri, 2002. "Unemployment and Growth in the Long Run: An Efficiency-Wage Model with Optimal Savings," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(3), pages 875-894, August.
    15. Pier Saviotti & Andreas Pyka, 2004. "Economic development by the creation of new sectors," Journal of Evolutionary Economics, Springer, vol. 14(1), pages 1-35, January.
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    Cited by:

    1. Agénor, Pierre-Richard & Lim, King Yoong, 2018. "Unemployment, growth and welfare effects of labor market reforms," Journal of Macroeconomics, Elsevier, vol. 58(C), pages 19-38.
    2. Florian Noseleit, 2013. "Entrepreneurship, structural change, and economic growth," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 735-766, September.
    3. repec:agr:journl:v:1(618):y:2019:i:1(618):p:115-128 is not listed on IDEAS
    4. Martin Zagler, 2006. "Does Economic Growth Exhibit A Different Impact On Job Creation And Job Destruction?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(5), pages 672-683, November.
    5. Malayaranjan SAHOO & Jayantee SAHOO, 2019. "The relationship between unemployment and some macroeconomic variables: Empirical evidence from India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(618), S), pages 115-128, Spring.
    6. Shafaq Salam & Muhammad Hafeez & Muhammad Tariq Mahmood & Kashif Iqbal & Kashifa Akbar, 2019. "The Dynamic Relation between Technology Adoption, Technology Innovation, Human Capital and Economy: Comparison of Lower-Middle-Income Countries," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 17(1-B), pages 146-161.
    7. Hiroaki Sasaki, 2024. "Effects of product and process innovation on growth and unemployment," SN Business & Economics, Springer, vol. 4(11), pages 1-32, November.
    8. Teixeira, Aurora A.C. & Queirós, Anabela S.S., 2016. "Economic growth, human capital and structural change: A dynamic panel data analysis," Research Policy, Elsevier, vol. 45(8), pages 1636-1648.
    9. Bernadette Mukhwana Wanjala & Maureen Were, 2009. "Gender Disparities and Economic Growth in Kenya: A Social Accounting Matrix Approach," Feminist Economics, Taylor & Francis Journals, vol. 15(3), pages 227-251.
    10. Anabela Queirós & Aurora A.C. Teixeira, 2014. "Economic growth, human capital and structural change: an empirical analysis," FEP Working Papers 549, Universidade do Porto, Faculdade de Economia do Porto.

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    More about this item

    Keywords

    ECONOMIC GROWTH ; UNEMPLOYMENT ; COSTS;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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