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Unemployment and Labour Market (In)Flexibility

In: Growth, Unemployment, Distribution and Government

Author

Listed:
  • Vani K Borooah

    (University of Ulster)

Abstract

Although high rates of unemployment have emerged over the past decade as a pressing problem for the countries of the European Union there has been a marked shift in opinion as to the appropriate policies that should be followed in order to combat unemployment. In particular, the cosy certainties of the 1950s and 1960s that demand management policies could deliver full employment have (as the previous chapter showed) given way to the realisation that such policies are only able to purchase temporary improvements in the unemployment rate (relative to the economy’s ‘equilibrium’ rate of unemployment, that is, to its NAIRU) at the expense of permanent increases in the inflation rate.

Suggested Citation

  • Vani K Borooah, 1996. "Unemployment and Labour Market (In)Flexibility," Palgrave Macmillan Books, in: Growth, Unemployment, Distribution and Government, chapter 7, pages 57-66, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37300-6_7
    DOI: 10.1057/9780230373006_7
    as

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