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STATISTICAL EQUILIBRIUM IN A SIMPLE LABOR MARKET
Author(s) -
Foley Duncan K.
Publication year - 1996
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.1996.tb00792.x
Subject(s) - economics , simple (philosophy) , neoclassical economics , mathematical economics , econometrics , philosophy , epistemology
A simple model of the labor market is analyzed using the concept of statistical equilibrium. Involuntary unemployment is revealed to be an equilibrium phenomenon in this approach. The consequences of wage subsidies depend critically on whether they are paid to workers or to employers.