Working Paper No. 520

Cumulative Effects of Labor Market Distortions

Published: January 19, 1999. Revised October 5, 2000.Pages: 23Keywords: Vertical Linkages; Multiple Equilibria; Labor UnionsJEL-codes: F12, O11, J50

Cumulative Effects of Labor Market Distortions Pehr-Johan Norbäck

This paper considers a small open economy whit an input-output industrial structure that creates vertical linkages multiple equilibria. An imperfect labor market is introduced by assuming unionized labor. It is shown that a deregulation of the labor market may trigger a large, discontinuous expansion of industrial output, as reduced wage-costs start a circular, cumulative process in which expansions of the up- and downstream industries promote each other. Centralization of collective bargaining may, however, also be conductive to industrialization.

Pehr-Johan Norbäck


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Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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