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dc.contributor.authorGONZÁLEZ, Ignacio
dc.contributor.authorSALA, Hector
dc.date.accessioned2014-12-04T16:34:46Z
dc.date.available2014-12-04T16:34:46Z
dc.date.issued2014
dc.identifier.citationScottish journal of political economy, 2014, Vol. 61, No. 5, pp. 589-613
dc.identifier.issn0036-9292
dc.identifier.urihttps://hdl.handle.net/1814/33680
dc.description.abstractThis paper studies the impact of financialization on unemployment in the United States. We estimate a dynamic multi-equation macro labor model including labor demand, labor suppy, wage ;setting, and capital accumulation equations. Financialization appears as a key determinant of capital accumulation which, in turn, is the transmission channel toward its unemployment effects. We conduct a series of counterfactual simulations where we quantify the macroeconomic consequences of the recent swings experienced by the financialization process. We find that it has had relevant unemployment effects in all periods considered, even in those where financial payments were not the main driver of capital accumulation. We also identify a structural change in the financialization process in the early 1980s, and find that it has caused USA unemployment to systematically fluctuate around 2 percentage points above what it would otherwise have done. We call for a reappraisal of the way financial markets work, and stress the vital need of preventing financial devices that result in productive investment crowding-out.
dc.language.isoen
dc.relation.ispartofScottish journal of political economy
dc.titleInvestment crowding-out and labor market effects of financialization in the US
dc.typeArticle
dc.identifier.doi10.1111/sjpe.12059
dc.identifier.volume61
dc.identifier.startpage589
dc.identifier.endpage613
dc.identifier.issue5


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