Labor Market and Current Account Equilibria in Greenland

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Abstract

Greenland’s population and employment have historically been stable, but its growth performance is not impressive. Greenland enjoys rather stable fishing exports, and it receives two-thirds of its import capacity as a grant from Denmark. Non-fishing labor contributes to either private consumption or government consumption. The first is import-intensive and the second is labor-intensive. Greenland’s imports cannot exceed the sum of the grant and net fishing exports. A large public sector guarantees stable employment. A larger private-government consumption ratio is hypothesized as a way to increase welfare, and a lower real wage is the means by which this can be achieved.
Original languageEnglish
JournalNationaløkonomisk tidsskrift
Volume156
Issue number1
Number of pages20
ISSN0028-0453
Publication statusPublished - 2018

Keywords

  • Greenland
  • Labor market
  • Current account
  • Denmark

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