| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP5835
|
| DP5835 Hiring Freeze and Bankruptcy in Unemployment Dynamics |
| Pietro Garibaldi
|
| 发表日期 | 2006-09-17
|
| 出版年 | 2006
|
| 语种 | 英语
|
| 摘要 | We introduce non-homothetic preferences into a general equilibrium model of monopolistic competition and explore the impact of income inequality on the medium-run macroeconomic equilibrium. We find that (i) a sufficiently high extent of inequality divides the economy into mass consumption sectors (where firms charge low prices and hire many workers) and exclusive sectors (where firms charge high prices and hire few workers). (ii) High inequality may lead to a situation of underemployment and that underemployment could be "Keynesian" in the sense that it cannot be cured by downward-flexible real wages. (iii) A redistribution of income from rich to poor (by means of progressive taxation) leads to higher employment and such a redistribution is Pareto-improving. (iv) An exogenous increase in (minimum) real wages have a cost effect (that lets firms reduce their employment) and a purchasing power effect (that creates an incentive for mass production and raises aggregate employment) with ambiguous net effects. (v) The economy may feature multiple equilibria where full-employment and unemployment equilibria co-exist. |
| 主题 | Labour Economics
|
| 关键词 | Income distribution
Monopolistic competition
Mark-ups
Exclusion
|
| URL | https://cepr.org/publications/dp5835
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/534674
|
推荐引用方式
GB/T 7714 |
Pietro Garibaldi. DP5835 Hiring Freeze and Bankruptcy in Unemployment Dynamics. 2006.
|
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