Munich Personal RePEc Archive

Unemployment out of nowhere

Kakarot-Handtke, Egmont (2011): Unemployment out of nowhere.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_32257.pdf

Download (269Kb) | Preview

Abstract

Unemployment is usually explained with reference to the equilibrium of supply and demand in the labour market. This approach rests on specific behavioral assumptions that are formally expressed as axioms. The standard set of axioms is replaced in the present paper by a set of structural axioms. This approach yields the objective determinants of employment. They consist of effective demand, the actual outcome of price formation, structural stress as determined by the heterogeneity within the business sector and the income distribution. Sudden changes of employment are effected by latent relative switchers that are hard to spot empirically.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.