TY - JOUR
T1 - Unemployment, capital accumulation and labour market institutions in the Great Recession
AU - Stockhammer, Engelbert
AU - Guschanski, Alexander
AU - Kohler, Karsten
PY - 2014/9
Y1 - 2014/9
N2 - This paper restates the post-Keynesian view of unemployment within a NAIRU framework. In the short run, the private effective labour demand need not be downward sloping because of debt deflation and wage-led demand regimes. In the medium run, the NAIRU will be endogenous because of the social norm character of wage setting and the supply-side effects of capital accumulation. Capital investment rather than labour market institutions is the crucial variable that explains changes in unemployment performance. We provide econometric evidence that the post-Keynesian view holds up well in the recession following the crisis of 2008.
AB - This paper restates the post-Keynesian view of unemployment within a NAIRU framework. In the short run, the private effective labour demand need not be downward sloping because of debt deflation and wage-led demand regimes. In the medium run, the NAIRU will be endogenous because of the social norm character of wage setting and the supply-side effects of capital accumulation. Capital investment rather than labour market institutions is the crucial variable that explains changes in unemployment performance. We provide econometric evidence that the post-Keynesian view holds up well in the recession following the crisis of 2008.
KW - Economics and econometrics
U2 - 10.4337/ejeep.2014.02.05
DO - 10.4337/ejeep.2014.02.05
M3 - Article
SN - 2052-7764
VL - 11
SP - 182
EP - 194
JO - European Journal of Economics and Economic Policies: Intervention
JF - European Journal of Economics and Economic Policies: Intervention
IS - 2
ER -