IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-50632-9_8.html
   My bibliography  Save this book chapter

On the Causality between Economic Growth and Unemployment

In: Growth and Employment in Europe

Author

Listed:
  • Martin Zagler

    (Vienna University of Economics and Business Administration)

Abstract

This chapter investigates the relation and causality of economic growth and equilibrium unemployment for the European G7 countries - France, Germany, Italy and the United Kingdom. Whilst endogenous growth models with matching frictions on the labor market predict a causal relationship from economic growth to unemployment, efficiency wage models predict the opposite direction of causality, and insider-outsider models indicate causality in both ways. Granger causality tests for the four European G7 countries indicate that France can be explained through the matching model, and Italy and Germany by the efficiency wage model. The United Kingdom follows either a union model or the efficiency wage model, depending on the number of lags included in the estimation.

Suggested Citation

  • Martin Zagler, 2004. "On the Causality between Economic Growth and Unemployment," Palgrave Macmillan Books, in: Growth and Employment in Europe, chapter 8, pages 136-153, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50632-9_8
    DOI: 10.1057/9780230506329_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-50632-9_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.