Bargaining, Aggregate Demand and Employment
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Organización Internacional del Trabajo (OIT)
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| Format: | Entrada de enciclopedia |
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International Labour Organization
2012
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| _version_ | 1874525009837293571 |
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| author | Matthieu Charpe Stefan Kühn |
| author_facet | Matthieu Charpe Stefan Kühn Matthieu Charpe Stefan Kühn |
| contents | Bargaining, Aggregate Demand and Employment Matthieu Charpe Stefan Kühn This paper depicts the negative impact of a falling labour share caused by reduced bargaining power of workers on aggregate demand and employment. Contrary to standard New Keynesian models, the presence of consumers not participating in financial markets (rule of thumb consumers) causes an immediate negative response of output and employment, which is amplified when the economy faces a lower bound on the nominal interest rate. Additionally, the paper shows that by supporting consumption demand, minimum wages might enhance output and employment. Munich Personal RePEc Archive publication.encyclopediaEntry |
| format | Entrada de enciclopedia |
| id | ilo_995333256902676 |
| institution | Organización Internacional del Trabajo (OIT) |
| publishDate | 2012 |
| publisher | International Labour Organization |
| spellingShingle | Bargaining, Aggregate Demand and Employment Matthieu Charpe Stefan Kühn Bargaining, Aggregate Demand and Employment Matthieu Charpe Stefan Kühn This paper depicts the negative impact of a falling labour share caused by reduced bargaining power of workers on aggregate demand and employment. Contrary to standard New Keynesian models, the presence of consumers not participating in financial markets (rule of thumb consumers) causes an immediate negative response of output and employment, which is amplified when the economy faces a lower bound on the nominal interest rate. Additionally, the paper shows that by supporting consumption demand, minimum wages might enhance output and employment. Munich Personal RePEc Archive publication.encyclopediaEntry |
| title | Bargaining, Aggregate Demand and Employment |
| url | https://researchrepository.ilo.org/esploro/outputs/encyclopediaEntry/Bargaining-Aggregate-Demand-and-Employment/995333256902676 |