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Structural estimates of equilibrium unemployment in six OECD economies

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  • Albert van der Horst

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Abstract

In Europe, neither unemployment rates nor institutions are uniform. In the EMU, countries have coordinated their monetary policy, and fiscal policy might follow. Does convergence in fiscal policy imply that unemployment rates will converge, too, or is diversified fiscal policy desirable? An answer to this question requires insight into the dependence on fiscal policy of the unemployment rate in equilibrium. This study estimates the equilibrium rate of unemployment and shows that it has been affected significantly by taxes and benefits. Uniform fiscal policy would not, however, harmonise the unemployment rates because the impact of policy varies widely across the OECD economies.

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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 19.

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Date of creation: Jun 2003
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Handle: RePEc:cpb:discus:19

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Cited by:
  1. Katarzyna Budnik, 2012. "Do those who stay work less? On the impact of emigration on the measured TFP in Poland," National Bank of Poland Working Papers, National Bank of Poland, Economic Institute 113, National Bank of Poland, Economic Institute.
  2. Darius Hinz & Camille Logeay, 2006. "Forecasting Employment for Germany," IMK Working Paper 01-2006, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute, revised Jan 2006.
  3. Ruud de Mooij, 2004. "Towards efficient unemployment insurance in the Netherlands," CPB Memorandum, CPB Netherlands Bureau for Economic Policy Analysis 100, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Demougin, Dominique & Helm, Carsten, 2011. "Job matching when employment contracts suffer from moral hazard," European Economic Review, Elsevier, Elsevier, vol. 55(7), pages 964-979.
  5. Kees Folmer, 2009. "Why do macro wage elasticities diverge? A meta analysis," CPB Discussion Paper, CPB Netherlands Bureau for Economic Policy Analysis 122, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Cosmin ENACHE, 2012. "Unemployment Benefit, Minimum Wage And Average Salary Earnings In Romania," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 10, pages 85-96, December.
  7. repec:spo:wpecon:info:hdl:2441/f4rshpf3v1umfa09lat19ap14 is not listed on IDEAS
  8. Frédéric Reynès, 2006. "La formation des salaires et le concept de taux de chômage d’équilibre. Une tentative de réconciliation des courbes Wage Setting et de Phillips," Sciences Po publications info:hdl:2441/f4rshpf3v1u, Sciences Po.
  9. Dominique Demougin & Carsten Helm, 2009. "Incentive Contracts and Efficient Unemployment Benefits," CESifo Working Paper Series 2670, CESifo Group Munich.
  10. Ulrich Fritsche & Camille Logeay & Kirsten Lommatzsch & Katja Rietzler & Sabine Stephan & Rudolf Zwiener unter Mitarb. von Cansel Kiziltepe & Christian Proano-Acosta, 2005. "Auswirkungen von länderspezifischen Differenzen in der Lohn-, Preisniveau- und Produktivitätsentwicklung auf Wachstum und Beschäftigung in den Ländern des Euroraums: Endbericht ; Forschungsprojekt," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, DIW Berlin, German Institute for Economic Research, volume 8, number pbk8, July.
  11. Alho, Kari O.E. & Nikula, Nuutti, 2006. "Productivity, Empoyment and Taxes - Evidence on the Potential Trade-offs and Impacts in the EU," Discussion Papers, The Research Institute of the Finnish Economy 1054, The Research Institute of the Finnish Economy.
  12. repec:dgr:uvatin:2007056 is not listed on IDEAS
  13. Alho, Kari & Nikula, Nuutti, 2007. "Productivity, Employment and Taxes - A SVAR Analysis of Trade-offs and Impacts," Discussion Papers, The Research Institute of the Finnish Economy 1074, The Research Institute of the Finnish Economy.
  14. Kees Folmer, 2009. "Why do macro wage elasticities diverge?," CPB Memorandum, CPB Netherlands Bureau for Economic Policy Analysis 224, CPB Netherlands Bureau for Economic Policy Analysis.

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