Contents of the volume

2021, Volume 74 - Issue 2

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 24 May 2021

ECONOMIC RESTRUCTURING AND SOCIALIST CONSTRUCTION IN CHINA: 1950-1978

Abdol B. Soofi

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SOVEREIGN DEBT AND ECONOMIC GROWTH NEXUS IN ZIMBABWE: A DYNAMIC MULTIVARIATE CAUSALITY TEST

Talknice Saungweme, Nicholas M. Odhiambo

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A PANEL SVAR ANALYSIS OF THE LONG-RUN ECONOMIC IMPACTS OF MIGRATION

Romano PIRAS, Ivan Etzo, Carla Massidda, Paolo Mattana

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FREE FACTOR UNEMPLOYMENT

Paul Oslington

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EFFECTS OF MONETARY POLICY DECISIONS ON PROFESSIONAL FORECASTERS' EXPECTATIONS AND EXPECTATION UNCERTAINTY

Matti Viren, Sami Oinonen

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Paul OSLINGTON, Alphacrucis College, Sydney, Australia

Free Factor Unemployment

Pages

225-244

Abstract

It is well known that introducing various distortions into neoclassical general equilibrium models generates unemployment.  This paper shows how unemployment can occur in the absence of such distortions, with particular patterns of technology, prices and factor endowments.  For a technology with a labour saturation point, the marginal product of labour can fall to zero under particular market conditions, so that labour is in excess supply regardless of the wage rate.  This type of unemployment  can occur in the agricultural sector of developing economies, depression economies, and the rising urban underclass.

 

 

JEL classification

D50, F11, J64, J80

Keywords

Unemployment, General Equilibrium, Development, Zero Wages

Index

  1. Introduction
  2. Modelling framework
  3. Technology
  4. Factor supply
  5. Free factor unemployment equilibrium
  6. Comparative statics of free factor equilibrium
  7. An employment argument for protection?
  8. Does it explain real world unemployment?
  9. Conclusion

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