ISSN:
1573-6911
Keywords:
Wage determination
;
unemployment
;
capital shortage
;
cointegration
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract The paper is concerned with the determination of wages, unemployment and labour productivity in the UK. The theoretical model suggests that in addition to economic factors, historical and ideological elements play an important role in the determination of wages, unemployment and productivity. Particular emphasis is put on the capital shortage hypothesis. It is argued that capital scrapping in response to the two oil price shocks, combined with subsequent sluggish growth in capital, may be responsible for the rise of the NAIRU and the persistence of unemployment. The empirical analysis is concerned with testing the theoretical model, using quarterly data for the UK from 1966 until 1994. We use cointegration analysis for the determination of wages, unemployment and labour productivity.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1006849816076
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