Social Status, Labour Market Frictions and Endogenous Growth

Hung-Ju Chen, Dongpeng Liu and Xiangbo Liu
Additional contact information
Dongpeng Liu: Nanjing University
Xiangbo Liu: Renmin University of China and IMI

The Japanese Economic Review, 2018, vol. 69, issue 2, No 7, 226-250

Abstract: Abstract This paper develops an endogenous growth model that incorporates wealth-enhanced preferences for social status and labour market frictions to investigate the role of social status in determining unemployment and long-run growth. We show that the increase in the desire for social status reduces the unemployment rate, but its effect on long-run growth is unclear. We then calibrate our model to the US economy and find that an increase in the desire for social status lowers the unemployment rate and enhances the economic growth rate in the long run.

Keywords: E21; J64; O41 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1111/jere.12153 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jecrev:v:69:y:2018:i:2:d:10.1111_jere.12153

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/42973

DOI: 10.1111/jere.12153

Access Statistics for this article

The Japanese Economic Review is currently edited by Michihiro Kandori

More articles in The Japanese Economic Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().