Bargaining, Aggregate Demand and Employment

Fuente: Organización Internacional del Trabajo (OIT)
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Hauptverfasser: Matthieu Charpe, Stefan Kühn
Format: Entrada de enciclopedia
Veröffentlicht: International Labour Organization 2012
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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