Long-Run Economic Performance and the Labor Market

Alonso, Alberto Valdés; Echevarria, Cristina; Tran, Kien C.

doi:10.2307/4135279

Cited by 8 publications

(3 citation statements)

References 15 publications

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“…For example, in the Solow (1956) growth model, labour market rigidities can be argued to lead to a high capital labour ratio, which results in low levels of savings and capital accumulation and thus low growth. Furthermore, a rigid labour market implies that the economy produces below its potential and slows convergence of the economy toward its steady state (Alonso et al, 2004). Most empirical studies, however, do not provide strong support for the growth-enhancing effects of labour market reform.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Product and Labour Market Reform on Growth: Evidence for OECD Countries Based on Local Projections

Haan

Wiese

2020

SSRN Journal

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This paper examines the impact of labour and product market reforms on economic growth in 25 OECD countries between 1985 and 2013, and tests whether this impact is conditioned by the fiscal policy stance, i.e. whether there are fiscal expansions or adjustments. Our local projection results suggest that controlling for endogeneity of reforms and the stance of fiscal policy is crucial. To control for endogeneity, we use the Augmented Inverse Probability Weighted estimator. Our results suggest that product market reforms mostly cause slight negative growth, except when implemented during periods of neutral fiscal policy. Labour market reforms hurt growth under tight and neutral fiscal policy but are conducive to economic growth if introduced during periods of expansionary fiscal policy.

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Section: Introductionmentioning

confidence: 99%

The Impact of Product and Labour Market Reform on Growth: Evidence for OECD Countries Based on Local Projections

Haan

Wiese

2020

SSRN Journal

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“…For a Solow-Swan model with unemployment seeAlonso, Echevarria and Tran (2004)[3] 3. Our assumption is more in line with the original formulation by Malthus (1798)[9].…”

mentioning

confidence: 52%

“…However, given that the production function is Cobb-Douglas, both assumptions are equivalent. 3 In particular we assume that, g L = g(ω) (5) with g() continuously differentiable and such that ∃ω such that g(w) > −d ∀ω > ω . As an example consider that the rate of increase of population is a linear function of the real wage.…”

Section: Luis C Corchónmentioning

confidence: 99%

A Malthus-Swan-Solow model of economic growth

Corchón¹

2016

JDG

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In this paper we introduce in the Solow-Swan growth model a labor supply based on Malthusian ideas. We show that this model may yield several steady states and that an increase in total factor productivity might decrease the capital-labor ratio in a stable equilibrium. "Why has it taken economists so long to learn that demography influences growth?" Jeff Williamson (1998)[13] 2010 Mathematics Subject Classification. 37N40.

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