Publications [#285741] of Pietro F. Peretto

Journal Articles

1. Peretto, PF, Market power, growth, and unemployment (January, 2011), pp. 493-525, ISBN 9781780523965 [doi]
   (last updated on 2024/04/24)

   Abstract:
   I present a model where firms and workers set wages above the marketclearing level. Unemployment is thus generated by their exercise of market power. Because both the labor and product markets are imperfectly competitive, market power in the labor market interacts with market power in the product market. This interaction sheds new light on the effects of policy interventions on unemployment and growth. For example, labor market reforms that reduce labor costs reduce unemployment and boost growth because they expand the scale of the economy and generate more competition in the product market. © 2011 by Emerald Group Publishing Limited. All rights reserved.