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The Determinants Of Unemployment Revisited – Empirical Evidence On Oecd

Author

Listed:
  • Daria STAVILA

    (Faculty of Economics and Business Administration, University Babeș-Bolyai, Cluj-Napoca, Romania)

  • Viorela Ligia VAIDEAN

    (Faculty of Economics and Business Administration, University Babeș-Bolyai, Cluj-Napoca, Romania)

Abstract

Unemployment is a serious economic problem that has repercussions for people, families, and entire civilizations. It is a dynamic phenomenon with immediate and long-term implications for individuals and society. As a result, understanding unemployment and its causes is critical for politicians, economists, and academics seeking to create effective measures to alleviate its harmful consequences. It is critical to acknowledge the complexities of unemployment to establish successful policies and programs that address its core causes. The goal of this research paper is to conduct a quantitative analysis of the main determinants of unemployment in The Organization for Economic Cooperation and Development, considering demographic, governmental, economic growth, and cultural factors, as well as the period of Financial and Economic Crisis (2008-2009), to determine their impact and the evolution of unemployment, which countries have the most promising results, and who are the outliers. As a result, during a 26-year period, pooled OLS, FEM, and REM methods have been applied to a panel database. Additionally, member states are clustered based on the factors of interest and subsampled depending on the year of joining the OECD. A comparative case study regarding the differences between European Union’s and OECD’s unemployment situation is presented as well. Previous research, on the other hand, has frequently concentrated on individual criteria, such as education level or job experience, without considering the larger economic, social, and political issues that might impact unemployment rates. Therefore, findings in this study are novel when compared to the previous literature in the subject, and they bring a new dimension to our knowledge of the unemployment phenomenon.

Suggested Citation

  • Daria STAVILA & Viorela Ligia VAIDEAN, 2023. "The Determinants Of Unemployment Revisited – Empirical Evidence On Oecd," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 32(1), pages 283-296, July.
    • Handle: RePEc:ora:journl:v:32:y:2023:i:1:p:283-296
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    References listed on IDEAS

    as
    1. Monika Bazyl, 2014. "Does low power distance culture contribute to lower long-term unemployment?," Applied Econometrics Papers, Department of Applied Econometrics, Warsaw School of Economics, vol. 1(1), pages 20-38.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    unemployment; economic growth; OECD; panel data.;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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