Unemployment in the OECD and Its Remedies

  • Patrick Minford
Conference paper

Abstract

There is evidence today of dramatic changes in the labor market as a result of competition between low-wage “emerging-market” economies and the rich OECD countries. In previous work I and others (for example, Bean, Layard, and Nickell, 1986; Davis and Minford, 1986; Layard and Nickell, 1985; Minford, 1983; and see Layard, Nickell, and Jackman, 1991, for other relevant work) have explored how far one can account for changing unemployment in the OECD through general equilibrium models of the open economy. These models have used conventional “elasticities” equations for the current account, assuming that the prevailing competition facing OECD countries was imperfect competition in manufactures from other OECD countries.

Keywords

Human Capital Real Wage Unskilled Labor Nontraded Good Traded Sector 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in to check access.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Bibliography

  1. Barro, R.J. 1991. “Economic Growth in a Cross Section of Countries.” Quarterly Journal of Economics106: 407–444.CrossRefGoogle Scholar
  2. Bean, C., R. Layard, and S. Nickell. 1986. “The Rise in Unemployment: A Multi-country Study.” Economica 53:Sl–22.CrossRefGoogle Scholar
  3. Benjamin, D., and L. Kochin. 1979. “Searching for an Explanation of Unemployment in Inter-War Britain.” Journal of Political Economy87: 441–470.CrossRefGoogle Scholar
  4. Davis, J., and P. Minford. 1986. “Germany and the European Disease.” Recherches Economiques de Louvain52: 373–398.Google Scholar
  5. Denison, E.F. 1967. Why Growth Rates Differ: Postwar Experience in Nine Western Countries. Washington, D.C.: Brookings Institution.Google Scholar
  6. Denison, E.F. 1974. Accounting for United States Economic Growth, 1929-1969. Washington, D.C.: Brookings Institution.Google Scholar
  7. Dollar, D. 1992. “Outward-Oriented Developing Countries Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976201003385.” Economic Development and Cultural Change, pp. 523–544.Google Scholar
  8. Friedman, M. 1968. “The Role of Monetary Policy.” American Economic Review58: 1–17.Google Scholar
  9. Hayek, F.A. 1945. “The Use of Knowledge in Society.” American Economic Review 35:519–530. Reprinted in Individualism and Economic Order. Chicago: University of Chicago, 1948.Google Scholar
  10. Heckscher, E. 1919. “The Effect of Foreign Trade on the Distribution of Income.” Economisk Tidskrift, pp. 497–512. Reprinted as Chapter 13 in AEA Readings in the Theory of International Trade. Philadelphia: Blakiston, 1949, pp. 272–300.Google Scholar
  11. Jones, R.W. 1967. “International Capital Movements and the Theory of Tariffs and Trade.” Quarterly Journal of Economics 81:1–38.CrossRefGoogle Scholar
  12. Jones, R.W. 1967. “International Capital Movements and the Theory of Tariffs and Trade.” Quarterly Journal of Economics81: 1–38.CrossRefGoogle Scholar
  13. Lawrence, R.Z., and M.J. Slaughter. 1993. “International Trade and American Wages in the 1980s: Giant Sucking Sound or Small Hiccup?” Brookings Papers, Microeconomics2: 161–226.CrossRefGoogle Scholar
  14. Layard, R., and S. Nickell. 1985. “The Causes of British Unemployment.” National Institute Economic Review111: 62–85.CrossRefGoogle Scholar
  15. Layard, R., S. Nickell, and R. Jackman. 1991. Unemployment—Macroeconomic Performance and the Labour Market. Oxford: Oxford University Press.Google Scholar
  16. Lucas, R.E., Jr. 1988. “On the Mechanics of Economic Development.” Journal of Monetary Economics22: 3–42.CrossRefGoogle Scholar
  17. Minford, P. 1983. “Labour Market Equilibrium in an Open Economy.” Oxford Economic Papers35: S207–244.Google Scholar
  18. Minford, P. 1989. “A Labour-Based Theory of International Trade.” In: J. Black and A.I. MacBean (eds.), Causes and Changes in the Structure of International Trade 1960–85, pp. 196–240. London: Macmillan.Google Scholar
  19. Minford, P. 1990. “The Poverty Trap after the Fowler Reforms.” In: A. Bowen and K. Mayhew (eds.), Improving the Incentives for the Low-Paid Macmillan for the National Economic Development OfficeGoogle Scholar
  20. Minford, P. 1994. “The OECD Unemployment Problem and the Role of Welfare.” Conference paper forthcoming in D. Snower (ed.), Policies To Deal with High Unemployment, CUP for CEPR, proceedings of CEPR conference of the same name in Vigo, N. Spain, September.Google Scholar
  21. Minford, P., J. Riley, and E. Nowell. 1995. “The Elixir of Growth: Trade, Non- Traded Goods and Development.” CEPR Working Paper No. 2. London: CEPR.Google Scholar
  22. Ohlin, B. 1933. Interregional and International Trade. Cambridge, Mass.: Harvard University Press.Google Scholar
  23. Parente, S.L., and E.C. Prescott. 1993a. “Technology Adoption and Growth.” Research Department Staff Report 136, revised September 1993, Federal Reserve Bank of Minneapolis. Forthcoming in Journal of Political Economy Google Scholar
  24. Parente, S.L., and E.C. Prescott. 1993b. “Changes in the Wealth of Nations.” Federal Reserve Bank of Minneapolis Quarterly Review Spring: 3–16.Google Scholar
  25. Rebelo, S. 1991. “Long-Run Policy Analysis and Long-Run Growth.” Journal of Political Economy99: 500–521.CrossRefGoogle Scholar
  26. Romer, P.M. 1986. “Increasing Returns and Long-Run Growth.” Journal of Political Economy94: 1002–1037.CrossRefGoogle Scholar
  27. Rybczynski, T.M. 1955. “Factor Endowments and Relative Commodity Prices.” Economica22: 336–341.CrossRefGoogle Scholar
  28. Samuelson, P.A. 1948. “International Trade and the Equalisation of Factor Prices.” Economic Journal58: 163–184.CrossRefGoogle Scholar
  29. Solow, R.M. 1956. “A Contribution to the Theory of Economic Growth.” Quarterly Journal of Economics70: 65–94.CrossRefGoogle Scholar
  30. Stolper, W., and P.A. Samuelson. 1941. “Protection and Real Wages.” Review of Economic Studies, pp. 58–73.Google Scholar
  31. Summers, R., and A. Heston. 1988. “A New Set of International Comparisons of Real Product and Price Levels Estimates from 130 Countries, 1950-1985.” The Review of Income and Wealth 34:1–25.CrossRefGoogle Scholar
  32. Summers, R., and A. Heston. 1991. “The Penn World Tables (Mark 5): An Expanded Set of International Comparisons, 1950–88.” Quarterly Journal of Economics 106:327–368.CrossRefGoogle Scholar
  33. Thomas, J., and T. Worrall. 1994. “Foreign Direct Investment and the Risk of Expropriation.” Review of Economic Studies61: 81–108.CrossRefGoogle Scholar
  34. Wood, A. 1994. North-South Trade, Ezmployment and Inequalityn Changing Fortunes in a Skill-Driven World. Oxford: Clarendon. Google Scholar
  35. Worrall, T. 1990. “Debt with Potential Repudiation.” European Economic Review.Google Scholar

Copyright information

© Springer-Verlag Berlin · Heidelberg 1996

Authors and Affiliations

  • Patrick Minford

There are no affiliations available

Personalised recommendations