Unemployment and Full Employment. A Retrospective View
digital
Article
€ 6.00
|
Ebook format Pdf readable on these devices:
|
|
This paper shows that Pigou’s theory of unemployment, contrary to what Keynes thought, does
not assume states of full employment only, but offers an analysis of situations of persistent underemployment
which are not necessarily associated with labour market supply factors. Indeed, Pigou’s
«classical theory» assigns a significant role to aggregate demand in the determination of mass unemployment,
although Pigou was very cautious as regards the feasibility of demand policies as a means
for achieving full employment. The modern theory of the natural rate of unemployment, as empirically
developed in the context of the NAIRU approach, claims to provide an explanation of equilibrium
unemployment based on labour market supply factors. After showing the weak operational
content of the modern NAIRU approach, this paper emphasises the theoretical distance between
models developed within this approach and Pigou’s «classical theory» of unemployment
Key words: Unemployment, Keynesian theory, Pigou, NAIRU.
JEL Classification: B30, J01.
|
Browse the archive
Open Access Articles
Recent issues
RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2023 - 4
RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2023 - 3. A special issue on “Economic and Social Exclusion and the NEETs”
RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2023 - 2
RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2023 - 3. A special issue on “Economic and Social Exclusion and the NEETs”
RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2023 - 2
Available online
202320222021202020192018201720162015201420132012201120102009200820072006200520042003200220012000199919981997199619951994199319921991199019891988198719861985198419831982198119801979197819771976197519741973197219711970196919681967196619651964196319621961196019591958195719561955195419531952195119501949194819471946194219411940193919381937193619351934