|
| |
| Javier Birchenall |
| |
| ''Capital accumulation, unemployment, and the putty-clay'' |
| ( 2004, Vol. 5 No.19 ) |
| |
| |
| This note studies the dynamics of labor markets in a putty-clay framework. It analyzes the evolution of job creation and job destruction in an economy without market frictions. Unemployment and labor market flows emerge under putty-clay technologies because low productive jobs become unused factors. As capital accumulates, firms destruct low productive jobs by obsolescence. Simultaneously, the use of capital intensive technologies s new jobs by the low substitution between capital and labor. |
| |
| |
| Keywords: |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
D9 - Intertemporal Choice and Growth: General |
| |
| Manuscript Received : Oct 26 2004 | | Manuscript Accepted : Nov 06 2004 |
|
