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Some political aspects of unemployment

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  • Saint-Paul, Gilles

Abstract

We study a number of mechanisms through which an economy can be stuck at a high unemployment equilibrium because a poor labour market is associated with support for poor policy. These mechanisms are consistent with the relative scarcity of measures that have been undertaken to cure unemployment. The message of the paper is that curing the European unemployment problem is a difficult task because a lot of skill is required to avoid political pitfalls.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 39 (1995)
Issue (Month): 3-4 (April)
Pages: 575-582

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Handle: RePEc:eee:eecrev:v:39:y:1995:i:3-4:p:575-582

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References

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  1. Gilles Saint-Paul, 2001. "The Dynamics of Exclusion and Fiscal Conservatism," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 275-302, April.
  2. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
  3. Saint-Paul, Gilles, 1993. "On the Political Economy of Labour Market Flexibility," CEPR Discussion Papers 803, C.E.P.R. Discussion Papers.
  4. Layard, R., 1989. "European Unemployment: Cause And Cure," Papers 368, London School of Economics - Centre for Labour Economics.
  5. Perotti, Roberto, 1993. "Political Equilibrium, Income Distribution, and Growth," Review of Economic Studies, Wiley Blackwell, vol. 60(4), pages 755-76, October.
  6. Layard, R. & Bean, C., 1988. "Why Does Unemployment Persist?," Papers 321, London School of Economics - Centre for Labour Economics.
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Cited by:
  1. Olivier Blanchard & Lawrence F. Katz, 1996. "What We Know and Do Not Know About the Natural Rate of Unemployment," NBER Working Papers 5822, National Bureau of Economic Research, Inc.
  2. Gersbach, Hans & Schniewind, Achim, 2001. "Awareness of General Equilibrium Effects and Unemployment," IZA Discussion Papers 394, Institute for the Study of Labor (IZA).
  3. Gilles Saint-Paul, 1996. "Labor market institutions and the cohesion of the middle class," International Tax and Public Finance, Springer, vol. 3(3), pages 385-395, July.
  4. Étienne Wasmer, 2001. "Changements de composition de la force de travail et dualisme," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(1), pages 133-148.
  5. David Cameron, 1999. "Unemployment in the New Europe:The Contours of the Problem," EUI-RSCAS Working Papers 35, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  6. Gray, David M., 2001. "An application of the 'insider-outsider' hypothesis: categorical adjustment assistance programs in France," European Journal of Political Economy, Elsevier, vol. 17(1), pages 139-156, March.

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