The Struggle for Rents in a Schumpterian Economy

H.L.F. de Groot

Research output: Working paperDiscussion paperOther research output

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Abstract

This paper develops a two-sector endogenous growth model with a dual labour market. Trade unions strive for the extraction of as high a rent as possible from the growth generating imperfectly competitive primary sector. This union behaviour results in a non-competitive wage differential between the primary and secondary (perfectly competitive) sector. The consequence of this distortion is the coming about of wait unemployment, i.e., unemployed queuing for high-paid jobs. Employment and growth are negatively dependent on the relative strength of the union. An increase in concentration in the high-tech sector is good for growth and employment.
Original languageEnglish
Place of PublicationTilburg
PublisherMacroeconomics
Number of pages30
Volume1996-51
Publication statusPublished - 1996

Publication series

NameCentER Discussion Paper
Volume1996-51

Fingerprint

Rent
Joseph Schumpeter
Unemployment
Queuing
Wage differentials
Endogenous growth model
High-tech
Dual labor market
Trade unions

Keywords

  • endogenous growth
  • trade unions
  • unemployment
  • dual labour markets
  • non-competitive wage differentials

Cite this

de Groot, H. L. F. (1996). The Struggle for Rents in a Schumpterian Economy. (CentER Discussion Paper; Vol. 1996-51). Tilburg: Macroeconomics.
de Groot, H.L.F. / The Struggle for Rents in a Schumpterian Economy. Tilburg : Macroeconomics, 1996. (CentER Discussion Paper).
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de Groot, HLF 1996 'The Struggle for Rents in a Schumpterian Economy' CentER Discussion Paper, vol. 1996-51, Macroeconomics, Tilburg.

The Struggle for Rents in a Schumpterian Economy. / de Groot, H.L.F.

Tilburg : Macroeconomics, 1996. (CentER Discussion Paper; Vol. 1996-51).

Research output: Working paperDiscussion paperOther research output

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KW - unemployment

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BT - The Struggle for Rents in a Schumpterian Economy

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de Groot HLF. The Struggle for Rents in a Schumpterian Economy. Tilburg: Macroeconomics. 1996. (CentER Discussion Paper).