TY - BOOK ID - 84541837 TI - Unemployment, Capital-Labor Substitution, and Economic Growth PY - 1999 SN - 1462339956 1452777527 1281601187 9786613781871 1451893477 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Labor KW - Macroeconomics: Production KW - Employment KW - Unemployment KW - Wages KW - Intergenerational Income Distribution KW - Aggregate Human Capital KW - Aggregate Labor Productivity KW - Aggregate Factor Income Distribution KW - Wages, Compensation, and Labor Costs: General KW - Unemployment: Models, Duration, Incidence, and Job Search KW - Labor Demand KW - Labour KW - income economics KW - Real wages KW - Labor demand KW - Economic theory KW - Labor market KW - United Kingdom KW - Income economics UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541837 AB - This paper discusses the influence of economic growth on the equilibrium unemployment rate (NAIRU). It examines how income distribution and the NAIRU are influenced by capital formation, technical progress, and labor force expansion, and how these factors’ impact depends on the elasticity of substitution between capital and labor. The paper distinguishes between the short-run NAIRU when capital stock is exogenous, and the long-run NAIRU when it is endogenous. It also considers how the analysis must be modified to take into account Keynesian ideas concerning the role of aggregate demand. It concludes that unless the capital stock grows in line with labor supply in efficiency units, the short-run NAIRU will increase, reducing the scope for demand stimulation. ER -