Unemployment in the EU: Institutions, prices and growth

Arbeitspapier

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 labour market adjustment processes, (b) the interplay between these adjustment processes and the dynamic structure of labour 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 labour 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 long-run 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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CEPR Discussion Paper Series ; No. 4243

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) ; Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General ; Unemployment: Models, Duration, Incidence, and Job Search ; Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
• Thema: Arbeitslosigkeit ; Hysteresis ; Schock ; Arbeitsmarktflexibilisierung ; Internationaler Wettbewerb ; Konjunktur ; Schätzung ; EU-Staaten

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Karanassou, Marika ; Sala, Héctor ; Snower, Dennis J.
• Ereignis: Veröffentlichung
• (wer): Centre for Economic Policy Research (CEPR)
• (wo): London
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/3209
• Letzte Aktualisierung: 20.09.2024, 08:21 MESZ