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SEARCH UNEMPLOYMENT AND THE EFFECT OF AGGREGATE DEMAND POLICY: A DUAL LABOR MARKETS ANALYSIS
Author(s) -
Tanaka Yasuhide
Publication year - 1990
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.1990.tb00465.x
Subject(s) - unemployment , economics , aggregate demand , dual (grammatical number) , argument (complex analysis) , aggregate (composite) , aggregate behavior , full employment , labor demand , labour economics , macroeconomics , monetary policy , art , biochemistry , chemistry , materials science , literature , composite material
This paper examines the role of aggregate demand policy affecting unemployment under a model of dual labor markets. Recently, some papers have considered the sources of unemployment in OECD countries and have stressed the role of aggregate demand policy in reducing it. However, there exists the argument that aggregate demand policy may have an adverse effect on unemployment. Therefore, in this paper, we will consider in what situations aggregate demand policy has such an effect on unemployment, and propose an analysis of its microfoundation.