search query: @author Sachs, J. D. / total: 4
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| Author: | Burda, M. C. Sachs, J. D. |
| Title: | Assessing high unemployment in West Germany. |
| Journal: | World Economy
1989 : DEC, VOL. 11:4, p. 543-563 |
| Index terms: | UNEMPLOYMENT FEDERAL REPUBLIC OF GERMANY PAY LABOUR MARKETS |
| Language: | eng |
| Abstract: | Some of the reasons for the secular rise in unemployment are examined. While deficient aggregate demand can certainly explain some of the current joblessness, it is concluded that the secular rise of unemployment equilibrium rates has consisted primarily of an increase in the underlying trend. Little evidence is found that this increase is due to the role of so-called frictional unemployment, such as increased job search due to lower cost of search or an increase in the variance of economic shocks impinging on the economy. Most importantly, the theoretical inability of labour markets to adjust and reallocate labour through changes in wage rates and earnings is noted. |
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