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WHY WAS UNEMPLOYMENT IN POSTWAR BRITAIN SO LOW? *
Author(s) -
Broadberry S. N.
Publication year - 1994
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.1994.tb00590.x
Subject(s) - unemployment , economics , wage , settlement (finance) , labour economics , inflation (cosmology) , low wage , productivity , full employment , norm (philosophy) , keynesian economics , macroeconomics , political science , law , physics , finance , theoretical physics , payment
Why was Unemployment in Postwar Britain So Low? This paper takes a fresh look at the low unemployment in postwar Britain, which is seen as exceptional rather than the norm. During the 1950s and 1960s low unemployment was reconciled with stable inflation through the exercise of wage restraint. Yet the postwar settlement which underpinned this wage restraint also allowed the entrenchment of restrictive practices, which inevitably slowed the growth of productivity and the feasible real wage, thus contributing to Britain's relative economic decline.