A Theory of Employment in Firms

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.

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

Contenu
1.1 A new theory.- 1.2 (Un)employment.- 1.3 Work organization and macroeconomic equilibrium.- 1.4 Skill bias and skill requirements.- 1.5 Other sources of unemployment.- 1.6 Main result and organization of the book.- The basic model.- 2.1 Endowment, technology, demand and market structure.- 2.2 Prices and production in the monopolistic competition equilibrium (stage 2).- 2.3 The equilibrium provision of work places (stage 1).- 2.4 The macroeconomic equilibrium: Summary and discussion.- Unemployability and involuntary unemployment.- 3.1 Equilibrium employment vs. efficient level of employment.- 3.2 Unemployment under wage rigidity.- 3.3 Market power of firms and rents for firm owners.- 3.4 Employment when firms have uncertain expectations.- Equilibrium reorganization of work and aggregate level of employment.- 4.1 Employment under different organization technologies and the available range of abilities.- 4.2 Central coordination versus decentralized communication.- 4.3 The adoption of organization technologies by firms.- 4.4 Equilibrium employment after reorganization.- 4.5 Job creation, job destruction and lean management.- Skilled and unskilled labor.- 5.1 Skilled labor as a limiting factor.- 5.2 Extension of the basic model to two types of labor.- 5.3 Employment and skill structure of jobs in the macroeconomic equilibrium.- 5.4 The role of skill supply and technological change for the employment of unskilled labor.- 5.5 (Un)employment of skilled and unskilled labor when highskilled workers have the power to acquire a rent.- Capital and the provision of work places.- 6.1 Introducing capital into the basic model.- 6.2 Employment and interest rate in the macroeconomic equilibrium.- 6.3 Comparative-static analysis of the macroeconomic equilibrium.- 6.4 The macroeconomic equilibrium when capital supply is elastic.- 6.5 Capital mobility and employment.- Investment and savings. Supply-side vs. demand-side macroeconomic equilibria.- 7.1 The relationship between investment, savings and other macroeconomic variables.- 7.2 Supply side vs. demand side in the equilibrium at stage 2.- 7.3 Equilibrium accumulation and equilibrium provision of jobs when firms are supply oriented.- 7.4 Equilibrium employment and equilibrium accumulation when firms have pessimistic demand expectations.- Summary.- A. Appendix to Chapter 2.- B. Appendix to Chapter 6.- References.- Author index.