TY - JOUR
T1 - The relation between the speed of demand saturation and the dynamism of the labour market
AU - Kurose, Kazuhiro
PY - 2009/6/1
Y1 - 2009/6/1
N2 - The purpose of this paper is to examine the medium run effect of the speed of demand saturation on the dynamism of the labour market which involves factors such as the growth of employment and real wage rate, using a computer simulation of the stochastically multi-sectoral pure labour model with a logistic demand function. From the simulation, we obtain the evolutions of the expectation of the employment rate and the real wage rate, supposing three cases where the speed of demand saturation for a product that stochastically emerges is, ceteris paribus, different. As a result, it is demonstrated that the faster growth of demand for a product that emerges stochastically accelerates the growth of employment, but decelerates the growth of real wage rate. The result depends on the heterogeneity of the agents, which is neglected by mainstream economics.
AB - The purpose of this paper is to examine the medium run effect of the speed of demand saturation on the dynamism of the labour market which involves factors such as the growth of employment and real wage rate, using a computer simulation of the stochastically multi-sectoral pure labour model with a logistic demand function. From the simulation, we obtain the evolutions of the expectation of the employment rate and the real wage rate, supposing three cases where the speed of demand saturation for a product that stochastically emerges is, ceteris paribus, different. As a result, it is demonstrated that the faster growth of demand for a product that emerges stochastically accelerates the growth of employment, but decelerates the growth of real wage rate. The result depends on the heterogeneity of the agents, which is neglected by mainstream economics.
KW - Growth of real wage rate
KW - Product and process innovation
KW - Speed of demand saturation
KW - Stochastically multi-sectoral model
UR - http://www.scopus.com/inward/record.url?scp=67349097728&partnerID=8YFLogxK
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U2 - 10.1016/j.strueco.2009.01.003
DO - 10.1016/j.strueco.2009.01.003
M3 - Article
AN - SCOPUS:67349097728
VL - 20
SP - 151
EP - 159
JO - Structural Change and Economic Dynamics
JF - Structural Change and Economic Dynamics
SN - 0954-349X
IS - 2
ER -