IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Croissance et emploi : l'ambition d'une initiative européenne

  • Jacques H.Drèze
  • Edmond Malinvaud

[eng] Growth and employment the scope of an European initiative Jacques Drèze, Edmond Malinvaud et Alii Executive Summary 1. Since almost twenty years now, European unemployment is a major social problem and the sign of significant underutilisation of resources at a time of substantial unfilled needs. Whereas employment increased by nearly 6 % between 1987 and 1990 in EC12, the rate of employment is now again exceeding 10 % and rising. Even under reasonably optimistic forecasts (a growth rate of 2.5 to 3 %), the unemployment rate will remain above 10 % for at least four or five years. This position paper reviews the short-, medium- and long-run policies best susceptible of promoting growth and employment in Europe. 2. We argue that fiscal policy is not, at this time, a suitable instrument of short-run stabilisation. Attention should rather be focussed on medium-term structural budget consolidation, which was neglected during the expansion of the late eighties. On the other hand, we argue for monetary stimulation through a strong decrease of short-term interest rates, and propose the reference level of zero short-term real interest rates. 3. Turning to medium-run policies, we advocate two sets of measures, concerning respectively labour costs and investment. 3. a We note that high unemployment is heavily concentrated among unskilled workers. Moreover, we find evidence of a trend in the skilll composition of labour demand, which contains a declining proportion of unskilled jobs. These considerations justify investment in training and education. We believe that they also justify immediate measures aimed at reducing the cost of unskilled labour relative to the cost of skilled labour and of capital. An important element of labour costs consists in taxes and social insurance contributions, which drive a substantial wedge — 30 to 50 % in the EC member countries — between the cost of labour to employers on the one hand, take-home pay or the social opportunity cost of unskil

(This abstract was borrowed from another version of this item.)

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: free

File URL:
Download Restriction: free

Article provided by Presses de Sciences-Po in its journal Revue de l'OFCE.

Volume (Year): n° 49 (1994)
Issue (Month): 2 ()
Pages: 247-288

in new window

Handle: RePEc:cai:reofsp:reof_p1994_49n1_0247
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cai:reofsp:reof_p1994_49n1_0247. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.