In this general equilibrium model, firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Capital and labor are the two factors of production. The existence of effici...In this general equilibrium model, firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Capital and labor are the two factors of production. The existence of efficiency wages leads to unemployment. The model is able to explain some interesting observations of the labor market. First, even though there is neither long-term labor contract nor costs of wage adjustment, wage rigidity is an equilibrium phenomenon： an increase in the exogenous job separation rate, the size of the population, the cost of exerting effort, and the probability that shirking is detected will not change the equilibrium wage rate. Second, the equilibrium wage rate increases with the level of capital stock. Third, a higher level of capital stock does not necessarily reduce the unemployment rate. That is, there is no monotonic relationship between capital accumulation and the unemployment rate.展开更多
Based on the theory of rigid wage of Keynesianism, this paper discusses the influence of rigid wage on unemployment in China＇s transition economy, and thoroughly analyzes the traditional concept of workers in state-o...Based on the theory of rigid wage of Keynesianism, this paper discusses the influence of rigid wage on unemployment in China＇s transition economy, and thoroughly analyzes the traditional concept of workers in state-owned enterprises. Then the paper puts forward that in order to activate employment market, solve current problem of the large quantity surplus labor, supply-demand rule of labor market should be obeyed, and the rigid wage of long-term contract should be replaced by the flexible wage of short-term contract. The solution of unemployment will be of great significance for Chinese economy growth and social development.展开更多
The management of future financial risk on the part of managers and changes in firm finances are two of the fundamental reasons for upward and downward rigidity of wages.The proxy variable for firm financial risk is v...The management of future financial risk on the part of managers and changes in firm finances are two of the fundamental reasons for upward and downward rigidity of wages.The proxy variable for firm financial risk is volatility,the past performance of which is among the principal indicators of wage rigidity.In firms whose current performance is on the upswing,the greater the volatility in past performance,the smaller the elasticity ratio and the more acute the upward rigidity;the more stable past performance,the larger the elasticity ratio and the more acute the upward elasticity.In firms in which current performance is declining,greater past performance volatility leads to a larger elasticity ratio and more acute downward rigidity,whereas more stable such performance leads to a smaller elasticity ratio and more acute downward rigidity.展开更多
This note is an effort to view the research program of Brecher and his co-workers to deploy tax incentives against involuntary unemployment in the broader context; on both the equity-efficiency trade-off in political ...This note is an effort to view the research program of Brecher and his co-workers to deploy tax incentives against involuntary unemployment in the broader context; on both the equity-efficiency trade-off in political economy, and the dual economic structure in the theoretic foundations of market equilibrium.展开更多
文摘In this general equilibrium model, firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Capital and labor are the two factors of production. The existence of efficiency wages leads to unemployment. The model is able to explain some interesting observations of the labor market. First, even though there is neither long-term labor contract nor costs of wage adjustment, wage rigidity is an equilibrium phenomenon： an increase in the exogenous job separation rate, the size of the population, the cost of exerting effort, and the probability that shirking is detected will not change the equilibrium wage rate. Second, the equilibrium wage rate increases with the level of capital stock. Third, a higher level of capital stock does not necessarily reduce the unemployment rate. That is, there is no monotonic relationship between capital accumulation and the unemployment rate.
文摘Based on the theory of rigid wage of Keynesianism, this paper discusses the influence of rigid wage on unemployment in China＇s transition economy, and thoroughly analyzes the traditional concept of workers in state-owned enterprises. Then the paper puts forward that in order to activate employment market, solve current problem of the large quantity surplus labor, supply-demand rule of labor market should be obeyed, and the rigid wage of long-term contract should be replaced by the flexible wage of short-term contract. The solution of unemployment will be of great significance for Chinese economy growth and social development.
基金supported by the National Natural Science Foundation (grant no. 70602011)the National Social Science Foundation (grant no. 08CJY009)the IAPHD Project of Nanjing University
文摘The management of future financial risk on the part of managers and changes in firm finances are two of the fundamental reasons for upward and downward rigidity of wages.The proxy variable for firm financial risk is volatility,the past performance of which is among the principal indicators of wage rigidity.In firms whose current performance is on the upswing,the greater the volatility in past performance,the smaller the elasticity ratio and the more acute the upward rigidity;the more stable past performance,the larger the elasticity ratio and the more acute the upward elasticity.In firms in which current performance is declining,greater past performance volatility leads to a larger elasticity ratio and more acute downward rigidity,whereas more stable such performance leads to a smaller elasticity ratio and more acute downward rigidity.
文摘This note is an effort to view the research program of Brecher and his co-workers to deploy tax incentives against involuntary unemployment in the broader context; on both the equity-efficiency trade-off in political economy, and the dual economic structure in the theoretic foundations of market equilibrium.
