Embodied human capital unemployment

Kumaraku, Klajdi and Naqvi, Nadeem and Rexhepi, Sara (2011): Embodied human capital unemployment.

Abstract

Adam Smith (1776) devoted the first three chapters to the division of labor in his Inquiry into the Nature and Causes of the Wealth of Nations. This process, carried far enough, eventually results in a divergence between the distributions of supplies and demands of such horizontally-differentiated distinct types of human capital embodied in different persons, leading to the emergence of Embodied Human Capital Unemployment. We illustrate the relevance of this new concept of unemployment to the U.S economy in the first decade of the 21st Century. This helps achieve a deeper understanding of the current global economic crisis, and inter alia to identification of potentially effective, and potentially ineffective, public policies. (111 words).

• Item Type: MPRA Paper
• Language: English
• Keywords: Unemployment; Human Capital; International Trade; Economic Crisis; China; India; U.S.A.; International Capital Mobility
• Subjects: F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity; F - International Economics > F0 - General > F02 - International Economic Order and Integration; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements; G - Financial Economics > G0 - General > G01 - Financial Crises

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