Arbeitspapier

Unemployment in the European Union: Institutions, prices, and growth

This paper presents a reappraisal of unemployment movements in the European Union. Our analysis is based on the chain reaction theory of unemployment, which focuses on (a) the interaction among labor market adjustment processes, (b) the interplay between these adjustment processes and the dynamic structure of labor market shocks, and (c) the interaction between the adjustment processes and economic growth. We divide the shocks into institutional variables, price variables, and growth drivers. Estimating a system of labor market equations for a panel of EU countries, we derive the dynamic unemployment responses to each shock. Our analysis permits us to distinguish between the short- and longrun effects of the shocks. Different shocks generate different degrees of 'unemployment persistence' (responses to temporary shocks) and 'unemployment responsiveness' (responses to permanent shocks). We find that the growth drivers play a dominant role in accounting for the main swings in EU unemployment.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 1247

Klassifikation
Wirtschaft
Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
Unemployment: Models, Duration, Incidence, and Job Search
Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications
Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
Mobility, Unemployment, Vacancies, and Immigrant Workers: General
Thema
Unemployment
Labor market shocks
Chain reaction theory
Employment
Labor force participation
Wage determination
Natural rate
Arbeitslosigkeit
Hysteresis
Schock
Arbeitsmarktflexibilisierung
Internationaler Wettbewerb
Konjunktur
Schätzung
EU-Staaten

Ereignis
Geistige Schöpfung
(wer)
Karanassou, Marika
Sala, Héctor
Snower, Dennis J.
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2004

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Karanassou, Marika
  • Sala, Héctor
  • Snower, Dennis J.
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2004

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