Declining high-wage industries and structural adjustment policy

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Show simple item record Barry, Frank 2009-10-01T13:27:09Z 2009-10-01T13:27:09Z 1989-04
dc.identifier.other 198907 en
dc.description.abstract In this paper a sector-specific disturbance generates unemployment that co-exists with relatively high wages in the adversely-affected industry. Previous analyses have interpreted this unemployment as "classical" in nature, assuming it to be caused by arbitrary wage rigidities, and have concluded that some degree of subsidization of the contracting sector is warranted on efficiency grounds. The present paper proposes an alternative "structural" explanation in which the privately-optimal response of workers and firms within a unionised high-wage industry leads to inefficiently low levels of labour transfer and a correspondingly high rate of sectoral unemployment. Subsidisation of the declining industry under these circumstances reduces efficiency. Several policies capable of achieving the optimal allocation of labour are explored, and the associated tax costs and income distributional effects analysed. en
dc.description.externalNotes A hard copy is available in UCD Library at GEN 330.08 IR/UNI en
dc.format.extent 799734 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. School of Economics en
dc.relation.ispartofseries UCD Centre for Economic Research Working Paper Series en
dc.relation.ispartofseries WP89/7 en
dc.subject.lcsh Unemployment--Effect of wages on en
dc.subject.lcsh Wages en
dc.subject.lcsh Structural adjustment (Economic policy) en
dc.title Declining high-wage industries and structural adjustment policy en
dc.type Working Paper en
dc.internal.availability Full text available en
dc.status Not peer reviewed en
dc.type.capturetechnique PDFimage en
dc.neeo.contributor Barry|Frank|aut| en

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