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Two Views on the Deterioration of European Labor Market Outcomes

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  • Richard Rogerson

    (Arizona State University and NBER,)

Abstract

This paper challenges the consensus view on the deterioration of European labor market outcomes relative to the United States. When looking at employment to population ratios rather than unemployment rates, I find that the deterioration begins in the mid-1950s and continues through the mid 1990s. I also present evidence to suggest that the key to understanding this deterioration is to understand why Europe has not developed a market service sector similar to the United States. (JEL: E2, J2). Copyright (c) 2004 The European Economic Association.

Suggested Citation

  • Richard Rogerson, 2004. "Two Views on the Deterioration of European Labor Market Outcomes," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 447-455, 04/05.
  • Handle: RePEc:tpr:jeurec:v:2:y:2004:i:2-3:p:447-455
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    Citations

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    Cited by:

    1. Hornstein, Andreas & Krusell, Per & Violante, Giovanni L., 2005. "The Effects of Technical Change on Labor Market Inequalities," Handbook of Economic Growth,in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 20, pages 1275-1370 Elsevier.
    2. Richard Rogerson, 2008. "Structural Transformation and the Deterioration of European Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(2), pages 235-259, April.
    3. Kevin X. D. Huang & Hui He, 2013. "Why Do Americans Spend So Much More on Health Care than Europeans?," Vanderbilt University Department of Economics Working Papers 13-00021, Vanderbilt University Department of Economics.
    4. Üngör, Murat, 2014. "Some thought experiments on the changes in labor supply in Turkey," Economic Modelling, Elsevier, vol. 39(C), pages 265-272.
    5. Messina, Julian, 2006. "The role of product market regulations in the process of structural change," European Economic Review, Elsevier, vol. 50(7), pages 1863-1890, October.
    6. Luis Eduardo Arango Thomas, 2011. "Mercado de trabajo de Colombia: suma de partes heterogéneas," Borradores de Economia 671, Banco de la Republica de Colombia.
    7. Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2007. "Technology—Policy Interaction in Frictional Labour-Markets," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1089-1124.
    8. Richard Rogerson, 2007. "Taxation and market work: is Scandinavia an outlier?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 32(1), pages 59-85, July.
    9. Kevin X. D. Huang & Gregory W. Huffman, 2010. "A Defense of the Current US Tax Treatment of Employer-Provided Medical Insurance," Vanderbilt University Department of Economics Working Papers 1001, Vanderbilt University Department of Economics.
    10. Richard Rogerson, 2006. "Understanding Differences in Hours Worked," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(3), pages 365-409, July.

    More about this item

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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