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Unions, Dutch Disease and Unemployment

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  • Chatterji, Monojit
  • Price, Simon
Abstract
Models are needed that can explain both the recent structural chang e in the U.K. economy and the possibility that this might have long-r un effects on unemployment. The major results are that arise in material prices is likely to increase long-run unemployment for countries that are net importers of materials, but might lower it for net exporters; that the discovery of a resource like North Sea oil lowers equilibrium unemployment; and that a model with exogenous "union" wages cannot predict the observed pattern of deindustrialization after an oil discovery, but one with an endogenous union wage may. Copyright 1988 by Royal Economic Society.

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  • Chatterji, Monojit & Price, Simon, 1988. "Unions, Dutch Disease and Unemployment," Oxford Economic Papers, Oxford University Press, vol. 40(2), pages 302-321, June.
    • Handle: RePEc:oup:oxecpp:v:40:y:1988:i:2:p:302-21
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    Cited by:

    1. Pilar Poncela & Eva Senra & Lya Paola Sierra, 2017. "Long-term links between raw materials prices, real exchange rate and relative de-industrialization in a commodity-dependent economy: empirical evidence of “Dutch disease” in Colombia," Empirical Economics, Springer, vol. 52(2), pages 777-798, March.
    2. Erling Røed Larsen, 2004. "Escaping the Resource Curse and the Dutch Disease? When and Why Norway Caught up with and Forged ahead of Its Neighbors," Discussion Papers 377, Statistics Norway, Research Department.
    3. Nicolás Magud & Sebastián Sosa, 2013. "When And Why Worry About Real Exchange Rate Appreciation? The Missing Link Between Dutch Disease And Growth," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(02), pages 1-27.
    4. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    5. Erling Røed Larsen, 2006. "Escaping the Resource Curse and the Dutch Disease?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(3), pages 605-640, July.
    6. Lubimov, I.L. (Любимов, И.Л.), 2016. "The Impact of Resource Wealth on Economic Growth: A Review of Foreign Experience and Estimates for Russia [Влияние Ресурсного Богатства На Экономический Рост: Обзор Зарубежного Опыта И Оценки Для Р," Working Papers 2044, Russian Presidential Academy of National Economy and Public Administration.

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