Involuntary unemployment with indivisible labor supply under perfect competition

Yasuhito Tanaka

Economics Bulletin, 2020, vol. 40, issue 3, 1914-1923

Abstract: We show the existence of involuntary unemployment without the assumption of wage rigidity under perfect competition with indivisible labor supply and decreasing or constant returns to scale technology. We derive involuntary unemployment by considering consumers' utility maximization and firms' marginal cost pricing behavior using an overlapping generations model with three generations including childhood generation.

Keywords: involuntary unemployment; indivisible labor supply; perfect competition. (search for similar items in EconPapers)
JEL-codes: E2 (search for similar items in EconPapers)
Date: 2020-07-14
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Citations: View citations in EconPapers (11)

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