Short Run And Long Run Cournot Equilibria In Multiproduct Industries

Author : Ramon Marimon
Publisher :
ISBN 13 :
Total Pages : 60 pages
Book Rating : 4.F/5 ( download)

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Download or read book 'Actual' Versus 'virtual' Employment in Europe written by Ramon Marimon and published by . This book was released on 1996 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the evolution of sectoral employment and labor cost in eleven European countries in the last two decades. Our statistical approach consists on decomposing for country and temporal effects. Virtual economies are construted by filtering country effects. We find that sectoral effects account for more that 80% of the long-run differentials across countries and industries in employment growth, whereas country-specific effects are more important in the analysis of labor cost dynamics. The initial distribution of labor across sectors plays a crucial role in explaining cross-country differences on employment. We pay special attention to Spain, the country that has experienced a higher persistent unemployment rate, and show that this can be the effect of a severe problem of sectoral reallocation, originating form the very high weight of the agricultural employment in 1975. Our study of the virtual economies also provides new evidence about the relative performance of some industries and/or countries, e.g., the poor performance of Belgium, the relatively good performance of Italy, in particular its textile sector, etc.