Pace versus type: the effect of economic growth on unemployment and wage patterns

Carré, Martine; Drouot, David

doi:10.1016/j.red.2003.12.002

Cited by 8 publications

(7 citation statements)

References 19 publications

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“…Some scholars believe that economic growth will generate employment growth [1]. The increase of labor input will increase the profits of firms, which will result in employment growth when labor productivity increases [2].…”

Section: Literature Reviewmentioning

confidence: 99%

“…On the basis of previous studies this paper decomposes the information of ΔE ir , variation of manufacturing employment in industry i in region r, into three parts: the national share (NS ir ), industrial structure share (IM ir ), regional share shift-share (RS ir ). Expression ΔE ir = NS ir + IM ir + RS ir (1) The national share indicates that how the manufacturing industry employment will increase if it grows at the same rate as the national employment growth rate. The calculation of NS is as follows:…”

Section: Dynamic Shift-share Analysismentioning

confidence: 99%

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An Information Decomposition based on DSS--- The Example of Manufacturing Employment Growth

Wang¹,

Wang²

2013

Proceedings of the 2nd International Conference on Science and Social Research

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This paper uses the data between year 1998 to 2011 of 31 provinces and cities to analyze the difference in the employment growth of manufacturing industry in these provinces as well as in eastern, middle and western regions. The results show that industry structure and regional factors have different influences in the employment growth of manufacturing industry in different regions and provinces and these influences have dynamic changes in different time periods. The fluctuation of the effects of regional factor on employment is not very significant; however it is significant in the eastern region especially after the break of economic crisis. The effects of regional factor on employment are relatively stable in the middle and western region and suffer little from the economic crisis.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Dynamic Shift-share Analysismentioning

confidence: 99%

An Information Decomposition based on DSS--- The Example of Manufacturing Employment Growth

Wang¹,

Wang²

2013

Proceedings of the 2nd International Conference on Science and Social Research

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“…The interactions between learning by doing, technological choices and the timing of adoption of new technologies are also analyzed in Parente (1994) and Jovanovic and Nyarko (1996). Carre and Drouot (2004) consider a Mortensen and Pissarides (1998) model to analyze how the change in the nature of technological progress modifies on-the-job learning and, through general equilibrium effects, unemployment and wage dispersion. Finally, Moreno-Galbis (2012) shows that, by introducing human capital issues, such as heterogeneous skills, human capital accumulation, on-the-job training and capital-skill complementarity, in a vintage framework in the style of Mortensen and Pissarides (1998), the impact of productivity growth on unemployment rates is magnified.…”

Section: Introductionmentioning

confidence: 99%

Retirement intentions in the presence of technological change: theory and evidence from France

2014

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This paper investigates the role of productivity as a determinant of the worker's retirement intentions. Using an overlapping generation framework, we analyze the retirement decision of a cohort of workers being ability heterogeneous. The labor market is endogenously segmented between workers having the required ability level to occupy jobs where the productivity is indexed to the technological state via on-the-job training (complex jobs) and the rest of workers, who are employed in positions where productivity is relatively deteriorated in case of technological change due to the absence of on-the-job training (simple jobs). In case of technological change, workers in complex jobs delay their retirement date, whereas workers in simple positions will not modify their retirement decision unless taxes change. Using data from France, we find that after a technological change, older workers who benefit from a skill upgrading training program have a higher intended retirement age. JEL: J14; J22; J24; J26

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“…with such frictions where they analyze how educational choices interact with wage determination and affect the growth rate. Carre and Drouot (2004) consider a Mortensen and Pissarides (1998) framework where they introduce intratask learning. They analyze how the change in the nature of technological progress modifies on-the-job learning and, through general equilibrium effects, unemployment and wage dispersion.…”

Section: Introductionmentioning

confidence: 99%

“…They analyze how the change in the nature of technological progress modifies on-the-job learning and, through general equilibrium effects, unemployment and wage dispersion. In Carre and Drouot (2004), the expertise is technology-specific and so it is lost in case of technological change (there is no complementary relation between skills and technological progress). When intratask returns are high the pace of technological updating falls (firms want to take advantage of the possibility of a worker to accumulate expertise on its current technology) whereas when returns are low firms prefer to increase their productivity by changing the technology.…”

Section: Introductionmentioning

confidence: 99%

The impact of TFP growth on the unemployment rate: Does on-the-job training matter?

Galbis

2012

European Economic Review

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This paper seeks to gain insights into the relationship between growth and unemployment in a setting with heterogeneous skills, human capital accumulation, on-the-job training and capital-skill complementarity. We use an endogenous job destruction framework in the style of Mortensen and Pissarides (1998) with directed search. We show that, when growth accelerates, a larger share of unskilled workers seeks training, increasing firms' incentives to update job-specific technology (rather than destroying it). By magnifying the impact of growth on employment, the introduction of human capital issues allows the model to more closely match the estimated sensitivity of unemployment with respect to growth. When calibrated, the model manages to reproduce the aggregate capitalization effect estimated using OECD data. We find that growth reduces unemployment for individuals receiving training, while it increases the unemployment rate of unskilled workers without training (creative destruction effect).

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Pace versus type: the effect of economic growth on unemployment and wage patterns

Cited by 8 publications

References 19 publications

An Information Decomposition based on DSS--- The Example of Manufacturing Employment Growth

An Information Decomposition based on DSS--- The Example of Manufacturing Employment Growth

Retirement intentions in the presence of technological change: theory and evidence from France

The impact of TFP growth on the unemployment rate: Does on-the-job training matter?

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