IDEAS home Printed from https://ideas.repec.org/p/wfo/wpaper/y2000i128.html
   My bibliography  Save this paper

Demand Shifts, Labour Mobility and Unemployment Persistence

Author

Listed:
  • Kurt Kratena

    (WIFO)

Abstract

In this study a two sector general equilibrium model with fully integrated labour and goods markets is presented. The two labour markets are segmented and represent two different "labour market regimes". The primary sector is an unionized high wage sector with "good" and rationed jobs, in the secondary sector the wage rate is given by a competitive labour market with "bad" jobs. Mobility between the two sectors takes place as in the Harris-Todaro model of migration depending on expected wage income in a sector. Goods demand depends on real household (workers) income and on relative prices given by unit costs. A simulation experiment shows that an ex ante aggregate neutral demand shift from the secondary to the primary sector might have a positive impact on aggregate unemployment, while a demand shift from the primary to the secondary sector could have a negative impact.

Suggested Citation

  • Kurt Kratena, 2000. "Demand Shifts, Labour Mobility and Unemployment Persistence," WIFO Working Papers 128, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2000:i:128
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/wwa/pubid/19142
    File Function: abstract
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2000:i:128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Mayr (email available below). General contact details of provider: https://edirc.repec.org/data/wifooat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.