Structural change, aggregate demand and employment dynamics in the OECD, 1970–2010

Jochen Hartwig

Structural Change and Economic Dynamics, 2015, vol. 34, issue C, 36-45

Abstract: The paper combines Baumol's model of structural change with a model of aggregate demand growth in the Keynesian–Kaleckian tradition to predict the dynamics of aggregate employment. The model for the demand regime is estimated with – and Baumol's model for the productivity regime is calibrated on – OECD data. The trajectory for employment predicted by the combination of the two models tracks the actual employment dynamics in the OECD over the period 1970–2010 remarkably well.

Keywords: Structural change; Demand growth; Productivity growth; Employment dynamics; OECD panel data (search for similar items in EconPapers)
JEL-codes: C23 E12 E13 E20 O41 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Working Paper: Structural Change, Aggregate Demand and Employment Dynamics in the OECD, 1970-2010 (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:34:y:2015:i:c:p:36-45

DOI: 10.1016/j.strueco.2015.06.001

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