IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Understanding Unemployment

Listed author(s):
  • Richard Layard

This lecture provides a general framework for analysing unemployment. For inflation to be stable, there must be sufficient unemployment to prevent 'target real wages' exceeding 'feasible real wages'. Target real wages depend on bargaining systems, benefit systems, labour market policies and mismatch. This framework explains inter-country differences in unemployment rates and British time series. The Restart Programme has helped in a major way to reduce British unemployment. Long-term unemployment is an almost total economic waste since it does little to reduce target real wages. It also imposes major external costs on British taxpayers since long-term unemployed people are so unlikely to become re-employed. Britain should adopt the Swedish 'employment principle' and the labour market policies that go with it.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0004.

in new window

Date of creation: May 1990
Handle: RePEc:cep:cepdps:dp0004
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cep:cepdps:dp0004. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.