haku: @indexterm UNEMPLOYMENT / yhteensä: 1236
viite: 231 / 1236
Tekijä: | Gersbach, H. |
Otsikko: | Product market competition, unemployment and income disparities |
Lehti: | Weltwirtschaftliches Archiv
1999 : HEFT 2, VOL. 135:2, p. 221-240 |
Asiasana: | Unemployment Incomes Markets Labour Competition Products Europe |
Kieli: | eng |
Tiivistelmä: | In this paper, it is discussed how promoting competition in product markets affects unemployment and wage differentials. There is examined a general equilibrium model with imperfections in product and labour markets. FirmsÂ’ profits are part of the income of high-skilled people. It is illustrated in the paper how more intense competition reduces unemployment. A decrease of mark-ups would induce an increase of real wages if real wages were flexible. This enables the employment of more low-skilled people above a real reservation wage. More intensive competition, however, widens wage and income differences btw. low-skilled and high-skilled workers. |
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