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
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.
|Date of creation:||May 1990|
|Date of revision:|
|Contact details of provider:|| Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP|
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 references are entirely missing, you can add them using this form.