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Unemployment after the Great Recession: Why so High? What Can We Do?/El desempleo después de la Gran Recesión: ¿Por qué tan alto? ¿Qué podemos hacer?

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  • REICH, MICHAEL

    () (Professor of Economics and Director, Institute for Research on Labor and Employment, UNIVERSITY OF CALIFORNIA, UNITED STATES.)

Abstract

The surprising increase in U.S. unemployment in the Great Recession and the persistence of long-term unemployment in the economic recovery pose important questions for employment policy. Why did unemployment grow more than forecast? Is the character of long-term unemployment the result of cyclical or structural causes? I discuss eight policy changes that would reduce the ranks of the unemployed and that would improve the efficiency of the labor market. Most of these proposals do not add big-ticket items to the Federal budget; their merits are independent of the question of how large the federal deficit should be at this time. El sorprendente incremento en el desempleo de Estados Unidos durante la Gran Recesión y la persistencia del desempleo de larga duración plantean grandes interrogantes para la política de empleo. ¿Por qué el desempleo creció más que lo que se había predicho? ¿Es la larga duración del desempleo el resultado de causas cíclicas o estructurales? Se discuten ocho cambios de política que reducirían el volumen de desempleo y que mejorarían la eficiencia del mercado de trabajo. La mayor parte de estas propuestas no suponen un incremento del presupuesto federal de Estados Unidos. Las aportaciones de esas medidas son independientes del problema de cuán grande debería ser el déficit público federal.

Suggested Citation

  • Reich, Michael, 2012. "Unemployment after the Great Recession: Why so High? What Can We Do?/El desempleo después de la Gran Recesión: ¿Por qué tan alto? ¿Qué podemos hacer?," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 11-28, Abril.
  • Handle: RePEc:lrk:eeaart:30_1_2
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    References listed on IDEAS

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    1. Ellen R. Rissman, 2009. "Employment growth: cyclical movements or structural change?," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q IV, pages 40-57.
    2. Card, David & Levine, Phillip B., 2000. "Extended benefits and the duration of UI spells: evidence from the New Jersey extended benefit program," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 107-138, October.
    3. Michael W. L. Elsby & Bart Hobijn & Aysegul Sahin, 2010. "The Labor Market in the Great Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 41(1 (Spring), pages 1-69.
    4. Steven J. Davis & R. Jason Faberman & John Haltiwanger, 2006. "The Flow Approach to Labor Markets: New Data Sources and Micro-Macro Links," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 3-26, Summer.
    5. Card, David & Levine, Phillip B., 1994. "Unemployment insurance taxes and the cyclical and seasonal properties of unemployment," Journal of Public Economics, Elsevier, vol. 53(1), pages 1-29, January.
    6. Farber, Henry S. & Hallock, Kevin F., 2009. "The changing relationship between job loss announcements and stock prices: 1970-1999," Labour Economics, Elsevier, vol. 16(1), pages 1-11, January.
    7. Dean Baker, 2009. "Job Sharing: Tax Credits to Prevent Layoffs and Stimulate Employment," CEPR Reports and Issue Briefs 2009-39, Center for Economic and Policy Research (CEPR).
    8. Dube, Arindrajit & Freeman, Eric & Reich, Michael, 2010. "Employee Replacement Costs," Institute for Research on Labor and Employment, Working Paper Series qt7kc29981, Institute of Industrial Relations, UC Berkeley.
    9. Jacob Funk Kirkegaard, 2009. "Structural and Cyclical Trends in Net Employment over US Business Cycles, 1949–2009: Implications for the Next Recovery and Beyond," Working Paper Series WP09-5, Peterson Institute for International Economics.
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    Cited by:

    1. Reich, Michael, 2012. "The Rising Strength of Management, High Unemployment and Slow Growth: Revisiting Okun’s Law," Institute for Research on Labor and Employment, Working Paper Series qt8sc8s1z1, Institute of Industrial Relations, UC Berkeley.

    More about this item

    Keywords

    Desempleo de larga duración; prestación por desempleo; incentivos a las empresas ; Long-Term Unemployment; Unemployment Insurance; Employer Incentives.;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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