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Some political aspects of unemployment

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  • Saint-Paul, Gilles

Abstract

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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Suggested Citation

  • Saint-Paul, Gilles, 1995. "Some political aspects of unemployment," European Economic Review, Elsevier, vol. 39(3-4), pages 575-582, April.
  • Handle: RePEc:eee:eecrev:v:39:y:1995:i:3-4:p:575-582
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    References listed on IDEAS

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    1. Gilles Saint-Paul, 2001. "The Dynamics of Exclusion and Fiscal Conservatism," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 275-302, April.
    2. Roberto Perotti, 1993. "Political Equilibrium, Income Distribution, and Growth," Review of Economic Studies, Oxford University Press, vol. 60(4), pages 755-776.
    3. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
    4. 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.
    5. Layard, R., 1989. "European Unemployment: Cause And Cure," Papers 368, London School of Economics - Centre for Labour Economics.
    6. Layard, Richard & Bean, Charles, 1989. " Why Does Unemployment Persist?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 91(2), pages 371-396.
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    Citations

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    Cited by:

    1. Olivier Blanchard & Lawrence F. Katz, 1997. "What We Know and Do Not Know about the Natural Rate of Unemployment," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 51-72, Winter.
    2. Brown, Alessio J.G. & Merkl, Christian & Snower, Dennis J., 2011. "Comparing the effectiveness of employment subsidies," Labour Economics, Elsevier, vol. 18(2), pages 168-179, April.
    3. Gilles Saint-Paul, 1996. "Labor market institutions and the cohesion of the middle class," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(3), pages 385-395, July.
    4. Étienne Wasmer, 2001. "Changements de composition de la force de travail et dualisme," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(1), pages 133-148.
    5. H.P. Grãœner & C. Hefeker, 1995. "Domestic pressures and the exchange rate regime: why economically bad decisions are politically popular?," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 48(194), pages 331-350.
    6. Gersbach, Hans & Schniewind, Achim, 2001. "Awareness of General Equilibrium Effects and Unemployment," IZA Discussion Papers 394, Institute for the Study of Labor (IZA).
    7. repec:bla:ecinqu:v:55:y:2017:i:3:p:1416-1429 is not listed on IDEAS
    8. David Cameron, 1999. "Unemployment in the New Europe:The Contours of the Problem," EUI-RSCAS Working Papers 35, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    9. Gray, David M., 2001. "An application of the 'insider-outsider' hypothesis: categorical adjustment assistance programs in France," European Journal of Political Economy, Elsevier, vol. 17(1), pages 139-156, March.

    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
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • Z00 - Other Special Topics - - General - - - General

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