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A Theory of Employment in Firms

Macroeconomic Equilibrium and Internal Organization of Work

  • Book
  • © 2002

Overview

Authors:
  1. Josef Falkinger

    1. Socioeconomic Institute Chair for Public Finance and Macroeconomics, University of Zurich, Zurich, Switzerland

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  • A new theory which explains the impact of the internal organization of work on employment
  • Includes supplementary material: sn.pub/extras

Part of the book series: Contributions to Economics (CE)

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Table of contents (8 chapters)

  1. Front Matter

    Pages I-X
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  2. Introduction

    • Josef Falkinger
    Pages 1-11

  3. The basic model

    • Josef Falkinger
    Pages 13-33

  4. Unemployability and involuntary unemployment

    • Josef Falkinger
    Pages 35-55

  5. Equilibrium reorganization of work and aggregate level of employment

    • Josef Falkinger
    Pages 57-83

  6. Skilled and unskilled labor

    • Josef Falkinger
    Pages 85-115

  7. Capital and the provision of work places

    • Josef Falkinger
    Pages 117-149

  8. Investment and savings. Supply-side vs. demand-side macroeconomic equilibria

    • Josef Falkinger
    Pages 151-176

  9. Summary

    • Josef Falkinger
    Pages 177-188

  10. Back Matter

    Pages 189-206
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Keywords

About this book

In a modern economy, production and competition require internal interaction of individuals in firms. The book provides a systematic treatment of the macroeconomic consequenses of this fact. For this purpose the concept of a two-stage monopolistic competition equilibrium is introduced into macroeconomic theory. Firms choose the capacity to organize internal interaction at stage 1 and compete at stage 2. The concept allows a rigorous analysis of the provision of work places and the economic determinants of the employable work force. The book explains why in the equilibrium of a market economy, even under flexible wages, no jobs may be provided for people who are employable from an efficiency point of view. The economic determinants of equilibrium employment covered by the analysis of the book are: New forms of work organization, changes in the skill structure of the labor force, market power of key factors for organization, expectations of investors and international capital movements.

Authors and Affiliations

  • Socioeconomic Institute Chair for Public Finance and Macroeconomics, University of Zurich, Zurich, Switzerland

    Josef Falkinger

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