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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

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

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References

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  1. Saint-Paul, Gilles, 1994. "The Dynamics of Exclusion and Fiscal Conservatism," CEPR Discussion Papers 998, C.E.P.R. Discussion Papers.
  2. Saint-Paul, G., 1993. "On the Political Economy of Labor Market Flexibility," DELTA Working Papers 93-02, DELTA (Ecole normale supérieure).
  3. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
  4. Layard, R. & Bean, C., 1988. "Why Does Unemployment Persist?," Papers 321, 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., 1989. "European Unemployment: Cause And Cure," Papers 368, London School of Economics - Centre for Labour Economics.
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Cited by:
  1. Saint-Paul, Gilles, 1995. "Labour Market Institutions and the Cohesion of the Middle Class," CEPR Discussion Papers 1298, C.E.P.R. Discussion Papers.
  2. 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.
  3. Blanchard, O & Katz, L, 1996. "What We Know and Do Not Know about the Natural Rate of Unemployment," Working papers 96-29, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. H.P. Grãœner & C. Hefeker, 1995. "Domestic pressures and the exchange rate regime: why economically bad decisions are politically popular?," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 48(194), pages 331-350.
  5. Brown, Alessio J G & Merkl, Christian & Snower, Dennis J., 2007. "Comparing the Effectiveness of Employment Subsidies," CEPR Discussion Papers 6334, C.E.P.R. Discussion Papers.
  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.
  7. Gersbach, Hans & Schniewind, Achim, 2005. "Awareness of General Equilibrium Effects and Unemployment," CEPR Discussion Papers 5012, C.E.P.R. Discussion Papers.
  8. 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).

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