Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10419/2933| Title: | Unemployment in the European Union: A dynamic reappraisal |
| Keywords: | J32 J60 J64 E30 E37 ddc:330 Unemployment , natural rate , NAIRU , labor market shocks , employment , labor force participation , wage determination , intertemporal adjustments Arbeitslosigkeit Natürliche Arbeitslosigkeit Schock Erwerbspersonenpotenzial EU-Staaten |
| Issue Date: | 16-Oct-2013 |
| Description: | 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 long-run 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). |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/2933 |
| Other Identifiers: | Economic modelling 0264-9993 20 2003 2 237-273 http://hdl.handle.net/10419/2933 ppn:361865112 RePEc:zbw:ifwkie:2933 |
| Appears in Collections: | EconStor |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.