Some political aspects of unemployment
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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References listed on IDEAS
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- Perotti, Roberto, 1993. "Political Equilibrium, Income Distribution, and Growth," Review of Economic Studies, Wiley Blackwell, vol. 60(4), pages 755-76, October.
- Saint-Paul, G., 1993.
"On the Political Economy of Labor Market Flexibility,"
DELTA Working Papers
93-02, DELTA (Ecole normale supérieure).
- Gilles Saint-Paul, 1993. "On the Political Economy of Labor Market Flexibility," NBER Chapters, in: NBER Macroeconomics Annual 1993, Volume 8, pages 151-196 National Bureau of Economic Research, Inc.
- Saint-Paul, Gilles, 1993. "On the Political Economy of Labour Market Flexibility," CEPR Discussion Papers 803, C.E.P.R. Discussion Papers.
- Saint-Paul, G., 1994.
"The Dynamics of Exclusion and Fiscal Conservatism,"
DELTA Working Papers
94-15, DELTA (Ecole normale supérieure).
- Layard, R. & Bean, C., 1988.
"Why Does Unemployment Persist?,"
321, London School of Economics - Centre for Labour Economics.
- Persson, T. & Tabellini, G., 1993.
"Is Inequality Harmful for Growth,"
537, Stockholm - International Economic Studies.
- Layard, R., 1989. "European Unemployment: Cause And Cure," Papers 368, London School of Economics - Centre for Labour Economics.
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