2021, Volume 74 - Issue 2
RSS feed citation: At RePEc
Publication date: 24 May 2021
ECONOMIC RESTRUCTURING AND SOCIALIST CONSTRUCTION IN CHINA: 1950-1978Read the article
SOVEREIGN DEBT AND ECONOMIC GROWTH NEXUS IN ZIMBABWE: A DYNAMIC MULTIVARIATE CAUSALITY TESTRead the article
A PANEL SVAR ANALYSIS OF THE LONG-RUN ECONOMIC IMPACTS OF MIGRATIONRead the article
Paul OSLINGTON, Alphacrucis College, Sydney, Australia
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.
D50, F11, J64, J80
Unemployment, General Equilibrium, Development, Zero Wages
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