Economic Models of Trade Unions pp 243-251 | Cite as
Long-term unemployment and macroeconomic policy
Chapter
Abstract
This paper bears a simple double message: when incumbent workers have some power in wage determination, then (a) there may be no natural rate of unemployment, and (b) both supply-side and demand-side policies may have lasting effects on the unemployment rate. However, our analysis implies that demand-side policies in the produet market may be mueh less reliable, and opera te through more complex ehannels, than the traditional Keynesians envisaged.
Keywords
Labour Market Real Wage Marginal Product Nominal Wage Macroeconomic Policy
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© Springer Science+Business Media Dordrecht 1992