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Structural Adjustment and Unemployment in Selected Eurozone Countries

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  • Rosaria Rita Canale
  • Giorgio Liotti

Abstract

type="main" xml:lang="en"> Although not always painless, sound public finance as an objective in the Eurozone generally goes unquestioned. The aim of this article is to investigate the effects of structural adjustment on unemployment in selected Eurozone countries from 2000 to 2013. The estimates suggest that fiscal tightening, especially in declining macroeconomic conditions, will tend to increase the unemployment rate. The results suggest that if the reduction in structural deficit has to be considered an objective to achieve per se, it should be pursued in times of growth.

Suggested Citation

  • Rosaria Rita Canale & Giorgio Liotti, 2015. "Structural Adjustment and Unemployment in Selected Eurozone Countries," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 48(2), pages 113-121, June.
    • Handle: RePEc:bla:ausecr:v:48:y:2015:i:2:p:113-121
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    Cited by:

    1. Giorgio Liotti, 2022. "Labour Market Regulation and Youth Unemployment in the EU-28," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(1), pages 77-103, March.
    2. Marc Audi & Amjad Ali, 2023. "Public Policy and Economic Misery Nexus: A Comparative Analysis of Developed and Developing World," International Journal of Economics and Financial Issues, Econjournals, vol. 13(3), pages 56-73, May.
    3. Sin-Yu Ho & Bernard Njindan Iyke, 2019. "Unemployment And Inflation: Evidence Of A Nonlinear Phillips Curve In The Eurozone," Journal of Developing Areas, Tennessee State University, College of Business, vol. 53(4), pages 151-163, Fall.
    4. Liotti, Giorgio, 2020. "Labour market flexibility, economic crisis and youth unemployment in Italy," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 150-162.
    5. Rosaria Canale, 2015. "Capital flows, long term bond yields and fiscal stance: the Eurozone policy trilemma," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 14(1), pages 31-44, December.
    6. Olusanya E. Olubusoye & Afees A. Salisu & Sam O. Olofin, 2023. "Youth unemployment in Nigeria: nature, causes and solutions," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(2), pages 1125-1157, April.

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