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
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
Labor market shocks
Chain reaction theory
Employment
Labor force participation
Wage determination
Natural rate
Arbeitslosigkeit
Hysteresis
Schock
Arbeitsmarktflexibilisierung
Internationaler Wettbewerb
Konjunktur
Schätzung
EU-Staaten
Sala, Héctor
Snower, Dennis J.
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:21 MESZ
Datenpartner
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