Disciplinary Unemployment as a Public Good, or the Importance of the Committee to Manage the Common Affairs of the Whole Bourgeoisie

Michael Ash
Additional contact information
Michael Ash: Department of Economics and Center for Public Policy and Administration, Thompson Hall, University of Massachusetts, Amherst, MA 01003mash@econs.umass.edu

Review of Radical Political Economics, 2005, vol. 37, issue 4, 471-475

Abstract: Unemployment disciplines workers and reduces the wage that firms must pay to prevent shirking. Equilibrium unemployment is too low from the perspective of the profit-maximizing firm because each firm fails to account for the reduction in unemployment imposed by its own hiring. An executive committee for macroeconomic policy can provide discipline as a public good by maintaining higher unemployment to increase collective profits.

Keywords: unemployment; labor force; macroeconomic policy (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations:

Downloads: (external link)
http://rrp.sagepub.com/content/37/4/471.abstract (text/html)

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:sae:reorpe:v:37:y:2005:i:4:p:471-475

Access Statistics for this article

More articles in Review of Radical Political Economics from Union for Radical Political Economics
Bibliographic data for series maintained by SAGE Publications ().