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Must we choose? European unemployment, American inequality, and the impact of education and labor market institutions

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  • Adsera, Alicia
  • Boix, Carles

Abstract

In the last fifteen years two equilibria have arisen in the advaced world. On the one hand, wage dispersion has widened in those countries where unemployment has remained low (with cyclical variation). On the other hand, wherever income inequality has remained unchaged, unemployment has shot upwards. To account for there distinct patterns, a combination of current theories - focusing separately on either technological and trade shocks or institutional arrangements - is required.
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  • Adsera, Alicia & Boix, Carles, 2000. "Must we choose? European unemployment, American inequality, and the impact of education and labor market institutions," European Journal of Political Economy, Elsevier, vol. 16(4), pages 611-638, November.
  • Handle: RePEc:eee:poleco:v:16:y:2000:i:4:p:611-638
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    1. Olivier J. Blanchard & Lawrence H. Summers, 1986. "Hysteresis and the European Unemployment Problem," NBER Chapters, in: NBER Macroeconomics Annual 1986, Volume 1, pages 15-90, National Bureau of Economic Research, Inc.
    2. Blanchard, Olivier & Jimeno, Juan F, 1995. "Structural Unemployment: Spain versus Portugal," American Economic Review, American Economic Association, vol. 85(2), pages 212-218, May.
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    5. Bertola, Giuseppe & Ichino, Andrea, 1995. "Wage Inequality and Unemployment: US vs Europe," CEPR Discussion Papers 1186, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Allanson, Paul, 2008. "On the characterisation and measurement of the welfare effects of income mobility from an ex-ante perspective," SIRE Discussion Papers 2008-48, Scottish Institute for Research in Economics (SIRE).
    2. Lane Kenworthy, 2004. "Welfare States, Real Income and Poverty," LIS Working papers 370, LIS Cross-National Data Center in Luxembourg.
    3. Kenworthy, Lane, 2002. "Do affluent countries face an income-jobs tradeoff?," MPIfG Discussion Paper 01/10, Max Planck Institute for the Study of Societies.
    4. Andreas Bergh, 2014. "Sweden and the Revival of the Capitalist Welfare State," Books, Edward Elgar Publishing, number 15717, September.
    5. Strand, Jon, 2003. "The decline or expansion of unions: a bargaining model with heterogeneous labor," European Journal of Political Economy, Elsevier, vol. 19(2), pages 317-340, June.
    6. Paul Allanson, 2012. "On the characterization and economic evaluation of income mobility as a process of distributional change," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(4), pages 505-528, December.
    7. Monastiriotis, Vassilis, 2006. "Macro-determinants of UK regional unemployment and the role of employment flexibility," MPRA Paper 44, University Library of Munich, Germany.
    8. Tregenna, F., 2009. "The Relationship Between Unemployment and Earnings Inequality in South Africa," Cambridge Working Papers in Economics 0907, Faculty of Economics, University of Cambridge.
    9. Alícia Adserà, 2004. "Changing fertility rates in developed countries. The impact of labor market institutions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 17-43, February.
    10. Hansen, Jorgen Drud, 2003. "Immigration and income redistribution in welfare states," European Journal of Political Economy, Elsevier, vol. 19(4), pages 735-746, November.

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    More about this item

    JEL classification:

    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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