Employment cycles, low income work and the dynamic impact of wage regulations. A macro perspective |
| |
Authors: | Peter Flaschel Alfred Greiner Camille Logeay Christian Proano |
| |
Affiliation: | 1. Bielefeld University, Universit?tsstra?e 25, 33615, Bielefeld, Germany 2. University for Applied Sciences Berlin (Hochschule f??r Technik und Wirtschaft), Berlin, Treskowallee 8, 10318, Berlin, Germany 3. The New School for Social Research and Macroeconomic Policy Institute (IMK) in the Hans-B?ckler Foundation, 6 East 16th Street, New York, NY, 10003, USA
|
| |
Abstract: | In this paper we investigate, against the background of Goodwin??s (1967) growth cycle model, a dual labor market economy and the consequences of introducing an unemployment benefit system and minimum wages in the second labor market and a maximum wage barrier in the first one. In the framework with free ??hiring?? and firing?? in the both labor markets we show (a) that in fact maximum real wages in the first labor market not only reduce the volatility of this labor market, but also provide global stability to the system dynamics if they are locally explosive, and (b) that larger fluctuations in employment can be made (at least partially) socially acceptable through a (workfare oriented) unemployment benefit system augmented by minimum wage in the low income segment of the labor market. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|