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Economic papers

Economic papers
Author: F. Ilzkovitz
Publisher:
Total Pages:
Release: 1987
Genre:
ISBN:

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Unemployment, Capital-Labor Substitution, and Economic Growth

Unemployment, Capital-Labor Substitution, and Economic Growth
Author: Mr.Bob Rowthorn
Publisher: International Monetary Fund
Total Pages: 39
Release: 1999-03-01
Genre: Business & Economics
ISBN: 1451846304

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This paper discusses the influence of economic growth on the equilibrium unemployment rate (NAIRU). It examines how income distribution and the NAIRU are influenced by capital formation, technical progress, and labor force expansion, and how these factors’ impact depends on the elasticity of substitution between capital and labor. The paper distinguishes between the short-run NAIRU when capital stock is exogenous, and the long-run NAIRU when it is endogenous. It also considers how the analysis must be modified to take into account Keynesian ideas concerning the role of aggregate demand. It concludes that unless the capital stock grows in line with labor supply in efficiency units, the short-run NAIRU will increase, reducing the scope for demand stimulation.


Labour Market Regulations and Capital Labour Substitution

Labour Market Regulations and Capital Labour Substitution
Author: Gilbert Cette
Publisher:
Total Pages: 28
Release: 2016
Genre:
ISBN:

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On the basis of a country*industry unbalanced panel data sample for 14 OECD countries and 18 industries covering the years 1988 to 2007, this study proposes an econometric investigation of the effects of the OECD Employment Protection Legislation (EPL) indicator on four components of total capital and for two skill components of total labor. Relying on a difference-in-difference econometric approach, we find that an increase in EPL has (i) positive and significant effects on the non-ICT capital - labor ratio and the share of high-skill labor; (ii) non-significant effects on the ICT capital - labor ratio; (iii) negative and significant effects for R&D capital - labor ratio and the share of low-skilled labor. These results suggest that firms consider that the strengthening of Employment Protection Legislation is equivalent to a rise in the cost of labour, resulting in capital-to-labour substitution in favour of non-ICT capital and working at the disadvantage of low-skill relatively to high-skill workers. They indicate to the contrary that structural reforms for more labour flexibility weakening this legislation could have a favourable impact on firms' R&D investment and their hiring of low-skill workers.


Capital-labour Substitution Possibilities; a Review of Empirical Research. Provisional

Capital-labour Substitution Possibilities; a Review of Empirical Research. Provisional
Author:
Publisher:
Total Pages: 0
Release: 1974
Genre:
ISBN:

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Working paper comprising a literature survey of economic research on the substitution elasticity of production functions in developing countries, in context with choice of technology - constitutes part of a WEP research project concerning technology and employment. Bibliography pp. 48 to 53 and statistical tables.


The Economic and Fiscal Consequences of Immigration

The Economic and Fiscal Consequences of Immigration
Author: National Academies of Sciences, Engineering, and Medicine
Publisher: National Academies Press
Total Pages: 643
Release: 2017-07-13
Genre: Social Science
ISBN: 0309444454

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The Economic and Fiscal Consequences of Immigration finds that the long-term impact of immigration on the wages and employment of native-born workers overall is very small, and that any negative impacts are most likely to be found for prior immigrants or native-born high school dropouts. First-generation immigrants are more costly to governments than are the native-born, but the second generation are among the strongest fiscal and economic contributors in the U.S. This report concludes that immigration has an overall positive impact on long-run economic growth in the U.S. More than 40 million people living in the United States were born in other countries, and almost an equal number have at least one foreign-born parent. Together, the first generation (foreign-born) and second generation (children of the foreign-born) comprise almost one in four Americans. It comes as little surprise, then, that many U.S. residents view immigration as a major policy issue facing the nation. Not only does immigration affect the environment in which everyone lives, learns, and works, but it also interacts with nearly every policy area of concern, from jobs and the economy, education, and health care, to federal, state, and local government budgets. The changing patterns of immigration and the evolving consequences for American society, institutions, and the economy continue to fuel public policy debate that plays out at the national, state, and local levels. The Economic and Fiscal Consequences of Immigration assesses the impact of dynamic immigration processes on economic and fiscal outcomes for the United States, a major destination of world population movements. This report will be a fundamental resource for policy makers and law makers at the federal, state, and local levels but extends to the general public, nongovernmental organizations, the business community, educational institutions, and the research community.