EconPapers    
Economics at your fingertips  
 

Unemployment and Productivity Growth: An Empirical Analysis within the Augmented Solow Model

Michael Bräuninger () and Markus Pannenberg

No 230, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: Does a country's level of unemployment have an impact on the long-run growth rate? Incorporating unemployment into a generalised Solow-type growth model, yields some answers. In the traditional Solow model, unemployment has no long-run influence on the growth rate and the level of productivity. The long-run level of productivity is reduced if higher unemployment leads to less formal education or to less learning-by-doing. If we allow for endogenous growth, unemployment reduces long-run productivity growth. Using panel data from 13 OECD countries from 1960 to 1990, we find evidence that an increase in unemployment scales down the long-run level of productivity.

Keywords: Growth; Equilibrium Unemployment; Panel Data (search for similar items in EconPapers)
JEL-codes: O40 O57 E24 (search for similar items in EconPapers)
Pages: 22 p.
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.diw.de/documents/publikationen/73/diw_01.c.44786.de/dp230.pdf (application/pdf)

Related works:
Journal Article: Unemployment and productivity growth: an empirical analysis within an augmented Solow model (2002) Downloads
Working Paper: Unemployment and Productivity Growth: An Empirical Analysis within the Augmented Solow Model (2000) Downloads
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:diw:diwwpp:dp230

Access Statistics for this paper

More papers in Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().

 
Page updated 2020-08-07
Handle: RePEc:diw:diwwpp:dp230