Deals with the influence of the labour growth rate on the capital per head in an economy with a pay‐as‐you‐go social security. Carries out the analysis within an overlapping generations model of a closed economy. Analyses the consequences of a shock on the labour growth rate. A decline of...

Does a country’s level of unemployment have an impact on the long-run growth rate? Incorporating unemployment into a generalised augmented Solow-type growth model, yields some answers to this question. In particular, we show that the impact of unemployment on productivity growth heavily...