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Protection, Employment and Welfare in a ‘Stagflating’ Economy

  • Jean Waelbroeck
Part of the International Economic Association Series book series (IEA)

Abstract

This paper examines the impact of protection in an economy in which production is held back by a rigid real wage that exceeds the level at which the labour market clears. The supply of labour exceeds the producers’ demand; workers are ‘rationed on the labour market’, to use the terminology of fixed price equilibrium theory. Prices are flexible, and goods markets clear without a need to constrain supply or demand.

Keywords

Wage Rate Real Wage Labour Demand Unemployment Benefit Nominal Wage 
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.

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References

  1. 2.
    See, for example, W. Godley and T. E. Cripps, ‘Formal Analysis of the Cambridge Economic Policy Group Model’, Economica, 43 (172) (November 1976), 335–48.CrossRefGoogle Scholar
  2. 3.
    See, for example, R. E. Caves, ‘Economic Models of Political Choice: Canada’s Tariff Structure’, Canadian Journal of Economics, 9 (2) (May 1976), 278–300.CrossRefGoogle Scholar
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    R. Barro, ‘Comment on “Unemployment, Employment, and Exports in British Manufacturing, a Non-Market Clearing Approach”’, by G. Muellbauer and D. Winter, European Economic Review (May 1980).Google Scholar
  4. 7.
    See R. E. Caves, ‘Economic Models of Political Choice: Canada’s Tariff Structure’, Canadian Journal of Economics (May 1976), 278–300;Google Scholar
  5. R. E. Caves, ‘Politico-Economic Factors Affecting Structural Change and Adjustment’, in C. Aislabie and C. Tisdell (ed.), Institute of Industrial Economics Conference Series, No. 5, University of Newcastle, 1979;Google Scholar
  6. R. E. Baldwin, ‘Trade and Employment Effects in the U.S. of Multilateral Tariff Rounds’, American Economic Review, Papers and Proceedings, 66 (2) (May 1976), 142–8.Google Scholar
  7. 11.
    J. H. Drèze and F. Modigliani, ‘The Tradeoff between Real Wages and Employment in an Open Economy (Belgium)’, European Economic Review, 15 (1) (January 1981), 1–40.CrossRefGoogle Scholar

Copyright information

© International Economic Association 1983

Authors and Affiliations

  • Jean Waelbroeck
    • 1
  1. 1.Belgium

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