Unemployment in the European Union: a dynamic reappraisal

Arbeitspapier

This paper examines the movements in EU unemployment from two perspectives: (a) the NRU/NAIRU perspective, in which unemployment movements are attributed largely to changes in the long-run equilibrium unemployment rate and (b) the chain-reaction perspective, in which unemployment movements are viewed as the outcome of the interplay between labor market shocks and prolonged lagged adjustment processes. We present an empirical analysis that distinguishes between unemployment movements arising from longrun equilibrium changes and those arising from lagged intertemporal adjustments. This analysis has far-reaching policy implications. Our analysis shows that the rise in EU unemployment over the 1970s and first part of the 1980s was due largely to permanent shocks (especially the rise in working-age population and the decline in capital formation), whereas the unemployment increase in the first part of the 1990s was due largely to temporary shocks (especially the fall in competitiveness and the rise in real interest rates).

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 531

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General ; Unemployment: Models, Duration, Incidence, and Job Search ; Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) ; Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications
• Thema: natural rate ; NAIRU ; labor market shocks ; employment ; labor force participation ; wage determination ; intertemporal adjustments ; homogeneous dynamic panels ; panel unit root tests ; unemployment ; Arbeitslosigkeit ; Natürliche Arbeitslosigkeit ; Schock ; Erwerbspersonenpotenzial ; EU-Staaten

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Karanassou, Marika ; Sala, Héctor ; Snower, Dennis J.
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2002

Weitere Informationen

• Handle: http://hdl.handle.net/10419/2800
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ