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Title: |
Technical Change in a Model with Fair Wages and Unemployment |
| Author: |
Rapanos,
Vassilis T. |
| Author
Affiliation: |
U Athens |
| Source: |
International Economic Journal, Winter 1996, v. 10, no. 4, pp. 99-121 |
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Publication Date: |
Winter 1996 |
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Abstract: |
The purpose of this paper is to reconsider
the results of the standard neoclassical theory of international trade
regarding the effects of technical change. We adopt a fair wage
hypothesis, by postulating a work effort function, which depends on the
relative returns to labor and capital, and the level of unemployment.
Our analysis shows that the results of the standard analysis, initiated
by Findlay and Grubert, may be altered considerably. Technical change
may significantly affect involuntary unemployment, which is endogenously
determined by the system, in contrast with most of the studies based on
the standard model. |
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