EconPapers    
Economics at your fingertips  
 

Can Underemployment Persist in an Expanding Economy? Clues from a Non-Walrasian OLG Model with Endogenous Longevity

Gregory Ponthiere

Post-Print from HAL

Abstract: This paper aims at casting a new light on the persistence of underemployment in emerging economies, by examining the relationship between labour market imperfections and longevity changes. For that purpose, we develop a two-period OLG model where longevity depends positively on the real wage, but negatively on the underemployment level, which both result from wage negotiations between a trade-union, representing workers (i.e. young generation), and the management, representing capital-holders (i.e. old generation). The existence, uniqueness and stability of a non-trivial steady-state equilibrium are studied. The distribution of bargaining power is shown to be a major determinant of the short run and long run dynamics of employment, production and longevity. The dynamics is also shown to be significantly sensitive to the precise form under which job quality affects longevity.

Keywords: OLG model : Underemployment : Longevity; Bargaining power; Wage bargaining (search for similar items in EconPapers)
Date: 2008-06
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Economic Change and Restructuring, 2008, 41 (2), pp.97-124. ⟨10.1007/s10644-008-9043-7⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Can underemployment persist in an expanding economy? Clues from a non-Walrasian OLG model with endogenous longevity (2008) 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:hal:journl:halshs-00754278

DOI: 10.1007/s10644-008-9043-7

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-22
Handle: RePEc:hal:journl:halshs-00754278