Concepts of Unemployment and the Structure of Employment
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Section 1 notes that a continuing reason for dissatisfaction with the economics literature on employment is its focus on the decision-making of workers, rather than that of firms, and its neglect of shifting structures of employment. Section 2 outlines a model of endogenous change in employers' decisions on the structure of employment, in which the rate of unemployment is partly determined by the percentage of firms who follow a casualized "just in time" employment strategy, while the profitability of such a strategy increases as aggregate unemployment increases. Section 3 asks how the vocabulary of analysis of unemployment can be interpreted if firms make structural decisions on employment. Section 4 concludes that increased "labor market flexibility" may largely mean lower average real wages and greater insecurity for workers.
Osberg, Lars. 1995. "Concepts of Unemployment and the Structure of Employment." Economie Appliquee 48(1): 157-181.