The Impossibility of "Involuntary Unemployment" in an Overlapping Generations Model with Rational Expectations

If there is unemployment no matter how low the wage rate becomes, one speaks of involuntary unemployment. This phenomenon has been shown to arise in a variety of temporary or atemporal macro models with imperfect competition in the goods markets. In this paper, the author investigates whether the phenomenon of involuntary unemployment arises in an overlapping generations model with rational expectations. It does not, neither in the short nor in the long run.

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Year of publication:	1989-03
Authors:	Schultz, Christian
Institutions:	Økonomisk Institut, Københavns Universitet
Subject:	labor economics \| employment studies \| general equilibrium and disequilibrium theory

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Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Published in: Journal of Economic Theory, 1992, 58(1) pp 61-76 Number 89-18 18 pages
Classification:	E24 - Employment; Unemployment; Wages ; D84 - Expectations; Speculations ; D51 - Exchange and Production Economies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005749583