Egalitarian Wage Policies and Long‐Term Unemployment
研究了当工人生产率不同时，中央推行的平等主义工资政策如何影响失业，发现总失业效应不确定：短期失业减少，但长期失业上升。
How does a centrally imposed egalitarian wage policy affect unemployment, when workers differ with respect to productivity? The effect on total unemployment is found to be ambiguous. Egalitarian wages encourage job creation because increased profits derived from the most productive workers more than outweigh reduced profits derived from the least productive workers. Short‐term unemployment is reduced. On the other hand, firms respond by raising their reservation productivity. Some workers are left almost completely unemployable. Long‐term unemployment rises. Less inequality in the wage distribution is obtained at the expense of more inequality in the distribution of unemployment.