Abstract
This paper bears a simple double message: when incumbent workers have some power in wage determination, then (a) there may be no natural rate of unemployment, and (b) both supply-side and demand-side policies may have lasting effects on the unemployment rate. However, our analysis implies that demand-side policies in the produet market may be mueh less reliable, and opera te through more complex ehannels, than the traditional Keynesians envisaged.
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References
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© 1992 Springer Science+Business Media Dordrecht
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Lindbeck, A., Snower, D.J. (1992). Long-term unemployment and macroeconomic policy. In: Garonna, P., Mori, P., Tedeschi, P. (eds) Economic Models of Trade Unions. International Studies in Economic Modelling. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2378-5_12
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DOI: https://doi.org/10.1007/978-94-011-2378-5_12
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-5049-4
Online ISBN: 978-94-011-2378-5
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