01692cas a2200241 a 4500 AALejournalIMF007411 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451956719 1018-5941 BD-DhAAL BD-DhAAL Braumann, Benedikt. Unemployment Persistence and Capital Shortage : The Case of Trinidad and Tobago / Benedikt Braumann. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the link between capital stock and unemployment persistence. An overlapping-generations model with endogenous labor supply and imperfect competition is presented. It is used to interpret the unusual persistence of unemployment in Trinidad and Tobago during the last twenty years. Although real wages are 60 percent lower today than in the mid-1980s, unemployment continues to be very high. The paper argues that an important part of the explanation lies in the decline of capital stock in this country after years of very low savings and investment. Policies to address this capital shortage are discussed. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1997/077 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/077/001.1997.issue-077-en.xml IMF e-Library