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| Yasuhito Tanaka |
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| ''Involuntary unemployment with indivisible labor supply under perfect competition'' |
| ( 2020, Vol. 40 No.3 ) |
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| We show the existence of involuntary unemployment without the assumption of wage rigidity under perfect competition with indivisible labor supply and decreasing or constant returns to scale technology. We derive involuntary unemployment by considering consumers' utility maximization and firms' marginal cost pricing behavior using an overlapping generations model with three generations including childhood generation.
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| Keywords: involuntary unemployment, indivisible labor supply, perfect competition.
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JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
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| Manuscript Received : Jan 10 2020 | | Manuscript Accepted : Jul 14 2020 |
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