Skip to main content
Article thumbnail
Location of Repository

From the Malthusian to the Modern Growth Regime in an OLG Model with Unions

By Luca Gori and Luciano Fanti


The passage from the Malthusian Regime to the Modern Regime has been theoretically investigated only in recent times and the understanding of this process is still incomplete. This paper develops a neoclassical OLG model of neoclassical growth which embodies a stylised fact emerged in the second half of the XIX century, especially in European countries, that is the unionisation of labour markets and the diffusion of unemployment insurance systems. The results of this paper suggest that, differently from the previous literature, the diffusion of trade unions - which, causing a simultaneous increase of wages and unemployment, on the one hand reversed the effects of wage on fertility and on the other hand enhanced savings, capital accumulation and output in the long-run - may have triggered or at least favoured the passage.Economic Growth

OAI identifier:

Suggested articles


  1. (1992). A Contribution to the Empirics of Economic Growth”,
  2. (1956). A Contribution to the Theory of Economic Growth”,
  3. (1988). A Reformulation of the Economic Theory of Fertility”,
  4. (2002). A Theory of Economic Growth. Dynamics and Policy in Overlapping Generations.
  5. (1996). Factor Shares in OLG Models of Growth”,
  6. (1999). From Malthusian Stagnation to Modern Growth”,
  7. (2005). From Stagnation to Growth: Unified Growth Theory”, Handbook of Economic Growth,
  8. (1996). Increasing the Capital Income Tax may Lead to Faster Growth”,
  9. (1991). Intergenerational Trade, Longevity and Economic Growth”,
  10. (1993). Intertemporal Macroeconomics.
  11. (1993). Labor Demand.
  12. (2002). Mortality, Fertility and Saving in a Malthusian Economy”,
  13. (1965). National Debt in a Neoclassical Growth Model”,
  14. (2000). Population, Technology and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond”,
  15. (2002). The Economics of the Trade Union.
  16. (1997). Unemployment, Growth and Taxation in Industrial Countries”, Working Paper 122, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University, available at:
  17. (2005). Unemployment: Macroeconomic Performance and the Labour Market, 2 nd Edition,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.