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Unemployment and Labor Market Rigidities: Europe versus North America

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  • Stephen Nickell

Abstract

The received wisdom tells us that the rigidity and inflexibility of European job markets relative to that in the United States is the reason why Europe has high unemployment. This paper argues that this broad brush analysis is simply too vague to be useful. Indeed it is probably positively misleading. Many labor market institutions that conventionally come under the heading of rigidities have no observable impact on unemployment and may otherwise serve a useful purpose.

Suggested Citation

  • Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
  • Handle: RePEc:aea:jecper:v:11:y:1997:i:3:p:55-74
    Note: DOI: 10.1257/jep.11.3.55
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.11.3.55
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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