Human Capital, Hysteresis and Unemployment among Workers with Finite Lives

Simon Price

Scottish Journal of Political Economy, 1992, vol. 39, issue 2, 201-12

Abstract: A simple model of equilibrium unemployment and worker quality is analyzed. Workers accumulate human capital in employment, which depreciates when they are unemployed. For infinitely lived agents, the model is characterized by either continually increasing or decreasing employment and output. For finitely lived individuals, there may be multiple equilibria. As a consequence, demand shocks may have severe implications and the model may provide a rationale for active demand management. Copyright 1992 by Scottish Economic Society.

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:39:y:1992:i:2:p:201-12

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0036-9292

Access Statistics for this article

Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

More articles in Scottish Journal of Political Economy from Scottish Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().