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Why Are European Countries Diverging in Their Unemployment Experience?

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Author Info
Saint-Paul, Gilles () (GREMAQ-IDEI, Université de Toulouse I, CEPR and IZA Bonn)

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Abstract

During the nineties, unemployment has fallen in a number of European countries while it has remained high in others. The paper discusses potential causes for that evolution in light of recent economic research, emphasizing obstacles to reform due to political constraints, the prevalence of ideology, and agency issues within those bureaucracies concerned with the unemployment problem. Some speculative thoughts are offered as to why those factors might be more stringent in countries where unemployment remained high.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1066.

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Length: 41 pages
Date of creation: Mar 2004
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Handle: RePEc:iza:izadps:dp1066

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Related research
Keywords: unemployment; labour market reform; ideology; political economy; flexibility;

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Find related papers by JEL classification:
D7 - Microeconomics - - Analysis of Collective Decision-Making
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gottfries, Nils & Horn, Henrik, 1987. "Wage Formation and the Persistence of Unemployment," Economic Journal, Royal Economic Society, vol. 97(388), pages 877-84, December. [Downloadable!] (restricted)
  2. Calmfors, Lars & Forslund, Anders & Hemström, Maria, 2002. "Does active labour market policy work? Lessons from the Swedish experiences," Working Paper Series 2002:4, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
    Other versions:
  3. Orszag, J.M. & Snower, D.J., 1998. "Anatomy of Policy Complementarities," Research Institute of Industrial Economics Working Papers 500, Research Institute of Industrial Economics (IFN).
    Other versions:
  4. Gersbach, Hans & Schniewind, Achim, 2001. "Learning of General Equilibrium Effects and the Unemployment Trap," IZA Discussion Papers 254, Institute for the Study of Labor (IZA). [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Hervé Boulhol, 2006. "Do capital market and trade liberalization trigger labor market deregulation ?," Cahiers de la Maison des Sciences Economiques bla06062, Université Panthéon-Sorbonne (Paris 1). [Downloadable!]
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  2. Catherine Mathieu & Henri Sterdyniak, 2007. "How to deal with economic divergences in EMU?," Documents de Travail de l'OFCE 2007-14, Observatoire Francais des Conjonctures Economiques (OFCE). [Downloadable!]
    Other versions:
  3. Dominique Demougin & Carsten Helm, 2008. "Incentive Contracts and Efficient Unemployment Benefits," Darmstadt Discussion Papers in Economics 191, Institut für Volkswirtschaftslehre (Department of Economics), Technische Universität Darmstadt (Darmstadt University of Technology). [Downloadable!]
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  4. Morawski, Leszek & Myck, Michal, 2008. "'Klin'-ing Up: Effects of Polish Tax Reforms on Those In and on Those Out," IZA Discussion Papers 3746, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Jens Rubart & Willi Semmler, 2007. "East German Unemployment from a Macroeconomic Perspective," Darmstadt Discussion Papers in Economics 187, Institut für Volkswirtschaftslehre (Department of Economics), Technische Universität Darmstadt (Darmstadt University of Technology). [Downloadable!]
  6. Jian-Ping Zhou, 2006. "Reforming Employment Protection Legislation in France," IMF Working Papers 06/108, International Monetary Fund. [Downloadable!]
  7. Emanuela Ghignoni, 2008. "Temporary contracts, employees’ effort and labour productivity: the evidence for Italy," Working Papers 111, Sapienza University of Rome, Department of Public Economics. [Downloadable!]
  8. Emanuela Ghignoni, 2006. "Human capital, unemployment, and probability of transition to permanent employment in the Italian regional labour markets," Working Papers 93, Sapienza University of Rome, Department of Public Economics. [Downloadable!]
  9. Holger Zemanek & Ansgar Belke & Gunther Schnabl, 2009. "Current Account Imbalances and Structural Adjustment in the Euro Area: How to Rebalance Competitiveness," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  10. Algan, Yann & Cahuc, Pierre, 2004. "Job Protection: The Macho Hypothesis," IZA Discussion Papers 1192, Institute for the Study of Labor (IZA). [Downloadable!]
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  11. Giulia Faggio & Stephen Nickell, 2006. "Patterns of Work Across the OECD," CEP Discussion Papers dp0730, Centre for Economic Performance, LSE. [Downloadable!]
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  12. Olivier L'Haridon & Franck Malherbet, 2006. "Employment Protection Reform in Search Economies," IZA Discussion Papers 2304, Institute for the Study of Labor (IZA). [Downloadable!]
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  13. Werner Eichhorst & Regina Konle-Seidl, 2005. "The Interaction of Labor Market Regulation and Labor Market Policies in Welfare State Reform," IZA Discussion Papers 1718, Institute for the Study of Labor (IZA). [Downloadable!]
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  14. Alain Jousten & Mathieu Lefebvre & Sergio Perelman & Pierre Pestieau, 2008. "The Effects of Early Retirement on Youth Unemployment: The Case of Belgium," IMF Working Papers 08/30, International Monetary Fund. [Downloadable!]
  15. Patrick Minford & Ruthira Naraidoo, 2009. "Vicious and virtuous circles--The political economy of unemployment," Working Papers 200914, University of Pretoria, Department of Economics. [Downloadable!]
    Other versions:
  16. Tattara, Giuseppe & Valentini, Marco, 2008. "Can employment subsidies and greater labour market flexibility increase job opportunities for youth? Revisiting the Italian On-the-job Training Program," MPRA Paper 10370, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  17. Olfa Alouini, 2009. "Country size, economic performance and the political economy of the euro zone : an empirical study of the size divide," Documents de Travail de l'OFCE 2007-01, Observatoire Francais des Conjonctures Economiques (OFCE). [Downloadable!]
  18. Leszek Morawski & Michal Myck, 2008. "'Klin'-ing up: effects of Polish tax reforms on those in and on those out," IFS Working Papers W08/12, Institute for Fiscal Studies. [Downloadable!]
  19. Philip R. Lane, 2006. "The Real Effects of EMU," The Institute for International Integration Studies Discussion Paper Series iiisdp115, IIIS. [Downloadable!]
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