Taxes on labour and unemployment in a shirking model with union bargaining
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Wage bargaining
This chapter examines the causes and problems of unemployment and considers how it can be reduced. One of the major economic objectives of governments is the reduction of unemployment. There are several causes of unemployment which can be cyclical (or demand-deficient) unemployment, structural unemployment, and seasonal unemployment. The equilibrium, or natural rate of unemployment, measures those unemployed when the labour market is in equilibrium. Unemployment represents a waste of resources and means the economy is not producing as much as it could. Governments will use different policies to reduce unemployment depending on the cause.
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In our country, the economic restructuring is turning from the planning economy to the marketing economy. In the course of transition, the phenomenon of unemployment is outstanding unavoidably. This article begins with the situation of unemployment in our country, and analyzes the course of the outstanding of unemployment under the condition of marketing economic relating the discussion about unemployment in economics. At last, It gives some advice to relieve the problem of unemployment.
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To realize enough employment is one of a country's macroscopic policy goals.But in our real life,we can't wipe out unemployment thoroughly.Overseas economists noticed unemployment problem long,they explored the reasons of unemployment,set up their unemployment theory employment policy.On the basis of summarizing unemployment theory, this article makes an application analysis to solve unemployment problem in our country.
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In Chapter 9, Section 9.3 we discussed the nature and measurement of unemployment, together with its economic, social and political costs. While there is a general consensus that the maintenance of a high and stable level of employment is an important objective of macroeconomic policy, there is considerable controversy over why unemployment exists and what governments can do to reduce it. This chapter looks at the debate over the causes of, and cures for, unemployment. At the outset it is worth emphasizing that the central question that underlies this continuing debate is whether the cause of unemployment is largely to be found inside or outside the labour market. If unemployment is essentially due to imperfections in the labour market, then government policy to reduce unemployment needs to be directed to alleviate such imperfections. If the cause of unemployment is largely to be found outside the labour market — because of insufficient spending in the goods market — then government policy needs to be directed to stimulate aggregate demand in the economy.
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This paper looks at the evolution of the unemployment problem in the Euro Area. Our goal is to look at what are the roots of the unemployment problem and to devise reasons of the already chronic unemployment problem. We show the main factors that prolong the agony of unemployment and whether it is likely that in the near future, the problem of unemployment in the Euro Area will bi past. In the Euro Area we follow the analysis of basic macroeconomic indicators of balance in an economy - GDP, inflation and unemployment. We consider whether the monetary strategy of inflation targeting has contributed to the unemployment problem, by reducing the potential output, but also to confirm that within the current global crisis there are some deviations from the theoretical concepts of basic macroeconomic relationships - Okun's law and the Phillips curve. We show that only Germany, with a 'small' sacrifice, can save the real sector in the peripheral Mediterranean countries, as well as in the entire Euro Area.
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I argue that in contrast to the literature to date efficiency wage and bargaining solutions will typically be independent. If the bargained wage satisfies the efficiency wage constraint efficiency wages are irrelevant. If it does not, typically we have the efficiency wage solution and bargaining is irrelevant.
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Abstract The paper examines Danish unemployment and the employment policy in the 1930s. The unemployment data indicate that though the unemployment increased dramatically the rate of unemployment remained low. The official Danish unemployment records definitely underestimated the actual unemployment in the early 1930s, but the discrepancy was hardly as big as some scholars have suggested. The paper furthermore points out that the rather atypical rise in the Danish unemployment from the mid-1930s can be attributed to a rise in the natural rate of unemployment due to an improved unemployment insurance coverage and a more comprehensive registration of the unemployment. The second part of the paper deals with the Danish employment policy. Unemployment remained high on the political agenda, but the employment problem never became the main target for the economic policy. An active employment policy was constrained by the problems of the balance of payments and the political disagreements in parliament. While the macroeconomic policy did help to stabilize the economy and the employment, the number of measures directly targeting the labour market was small, and they seldom gave rise to much job creation.
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his article is devoted to the study of unemployment in Russia. The article examines the theoretical foundations of unemployment, as well as an analysis, identifies the problems of unemployment, and finally develops a strategy to reduce unemployment in the country. The relevance of this topic is due to the fact that unemployment is increasing every year, it also relates to macroeconomic problems, i. e. the consequences of unemployment for any state have a strong impact on the economy. The article deals with the problems of the fact that today the term “unemployed” is widely used to denote disunity and social isolation, as well as high unemployment among young people. In times of economic downturn, young people suffer because of their often precarious position in the labor market, which is explained by their lack of skills and experience. That is why it is impossible to ignore the costs associated with managing the economic and social consequences of youth inactivity for the state budget.
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Unemployment is an integral part of a market economy. This means that the inevitable feature of a market economy is the existence of a certain level of unemployment, despite the fact that unemployment is one of the visible indicators of macroeconomic instability in the country. Unemployment causes macroeconomic instability precisely when the level of actual unemployment exceeds the set natural limit.
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The Dungey and Pitchford (DP) paper and the Debelle and Vickery (DV) paper are important contributions to the macroeconomic analysis of unemployment in Australia. Both papers focus on the question of what macroeconomic factors would reduce unemployment in Australia. Both papers use a rigorous theoretical framework as a basis for developing empirical relationships between unemployment, economic growth and real wages in Australia. The two papers have a similar theoretical basis and although different in implementation, reach the same policy conclusion: that unemployment can likely be significantly reduced by either or both, a reduction in real wages and an increase in economic growth. How this might be achieved either economically or politically is not addressed but the key result is that unemployment can be reduced by macroeconomic means. Rather than agree in detail with the approaches taken in both papers, in these comments I will draw on my own general equilibrium modelling to illustrate two key issues that both papers treat insufficiently and which require further research. The first is to directly address the question: if macroeconomic shocks are responsible for increasing unemployment in Australia, is the reduction in unemployment also possible through macroeconomic policy or is it really in the microeconomic details of labour markets where answers lie? The second issue is the key difference between an open economy and a closed economy in how the labour market should be modelled.
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