Driver, Ciaran and Muñoz-Bugarin, Jair (2010) 'Capital Investment and Unemployment in Europe: Neutrality or Not?' Journal of Macroeconomics, 32 (1). pp. 492-496.
Abstract
Productivity variables are often said to have no effect on the NAIRU under wage bargaining as the labour share is unaffected when production is characterised by a unit elasticity of substitution. While production functions such as the CES can explain a negative relationship between investment and equilibrium unemployment, the implication then is that the labour share should increase with investment. In this paper we show that for a long sample in the UK, the labour share has decreased with capital investment. For a panel of European countries for which estimation is possible, the same result is obtained.
| Item Type: | Journal Article |
|---|---|
| SOAS Departments & Centres: | Departments and Subunits > School of Finance & Management Legacy Departments > Faculty of Law and Social Sciences > School of Finance and Management |
| ISSN: | 01640704 |
| DOI (Digital Object Identifier): | https://doi.org/10.1016/j.jmacro.2009.03.003 |
| Date Deposited: | 22 Oct 2010 10:24 |
| URI: | https://eprints.soas.ac.uk/id/eprint/10507 |
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