?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fmpra.ub.uni-muenchen.de%2F7722%2F&rft.title=Labour+Market+Rigidity+and+Economic+Efficiency+with+Non-General+Purpose+Technical+Change&rft.creator=Grimalda%2C+Gianluca&rft.subject=J31+-+Wage+Level+and+Structure+%3B+Wage+Differentials&rft.subject=O30+-+General&rft.subject=J24+-+Human+Capital+%3B+Skills+%3B+Occupational+Choice+%3B+Labor+Productivity&rft.description=The+contrasting+effects+of+labour+market+rigidity+on+efficiency+are+investigated+in+a+model+where+technological+change+is+non-general+purpose+and+different+types+of+skills+are+available+to+workers.+Ex+ante+efficiency+calls+for+high+labour+market+rigidity%2C+as+this+favours+workers%E2%80%99+acquisition+of+specific+skills+which+have+higher+productivity+in+equilibrium.+Ex+post+efficiency+calls+for+low+market+rigidity%2C+as+this+allows+more+workers+to+transfer+to+the+innovating+sector+of+the+economy.+The+trade-off+between+these+two+mechanisms+results+in+an+inverse-U+shaped+relationship+between+output+and+labour+market+rigidity%2C+which+implies+that+a+positive+level+of+labour+market+rigidity+is+in+general+beneficial+for+the+economy.&rft.date=1971-12-30&rft.type=MPRA+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.identifier=https%3A%2F%2Fmpra.ub.uni-muenchen.de%2F7722%2F1%2FMPRA_paper_7722.pdf&rft.identifier=++Grimalda%2C+Gianluca++(1971)%3A+Labour+Market+Rigidity+and+Economic+Efficiency+with+Non-General+Purpose+Technical+Change.++++&rft.language=en