Structural recursion analysis with specialized work under the theory of inexistence of the labour market

Abstract

It develops a structural recursion analysis with specialized work under the theory of inexistence of the labour market (timt). This paper incorporates specialized work in the internal organization of firms, thus the production is made possible by two specialties necessary to produce: management and manufacturing. It is shown that if the wage differential resulting from the different wages to different specialties is unchanged, unemployment in the management workers generates unemployment in the manufacturing workers, to restore full employment in the last mentioned, it is required that the wage differential increases. Furthermore, it is shown that the existence of unemployment in the manufacturing workers, creating unemployment in the management workers.