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Some Political Aspects of Unemployment

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Author Info
Saint-Paul, Gilles

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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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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 949.

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Date of creation: May 1994
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Handle: RePEc:cpr:ceprdp:949

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Related research
Keywords: Exclusion; Firing Costs; Fiscal Conservatism; Labour Market Flexibility; Political Reform; Protection; Unemployment;

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Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
Z00 - Other Special Topics - - General - - - General

Cited by:
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  1. Blanchard, Olivier & Katz, Lawrence F, 1997. "What We Know and Do Not Know about the Natural Rate of Unemployment," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 51-72, Winter. [Downloadable!] (restricted)
    Other versions:
  2. 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). [Downloadable!]
  3. Gersbach, Hans & Schniewind, Achim, 2005. "Awareness of General Equilibrium Effects and Unemployment," CEPR Discussion Papers 5012, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. 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. [Downloadable!] (restricted)
    Other versions:
  5. 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. [Downloadable!]
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