Economic Growth: The Case of Irreversibility of Investment with Bargaining Power of Workers

다국어 초록 (Multilingual Abstract)

In this paper, we develop a model of endogenous growth with search frictions in the labor market. We show that the growth rate of the economy may be durably altered in a case of investment irreversibility and bargaining power of workers. Labor market conditions mitigate this rent-seeking effect of workers.

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