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A picture of European unemployment: success and failure

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  • Nickell, Stephen

Abstract

Average unemployment in Europe today is relatively high compared with OECD countries outside Europe. The majority of countries in Europe today have lower unemployment than any OECD country outside Europe, including the US. These two fa cts are consistent because the four largest countries in Continental Western Europe namely, France, Germany, Italy, Spain, (the Big Four), have very high unemployment and most of the rest have comparatively low unemployment. This variability is highly informative because the fifteen European countries which we consider have more or less independent labour markets in practice, despite ''free'' movement of labour. Using this information we see how changes in the structure of the various labour markets explain a substantial proportion of the secular fluctuations in unemployment in the various countries. In particular, we pin down some of the particular factors which enable us to understand why some European countries have been able fully to recover from the unemployment disasters of the early 1980s whereas some have not.

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  • Nickell, Stephen, 2003. "A picture of European unemployment: success and failure," LSE Research Online Documents on Economics 20039, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:20039
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    3. Batyra, Anna & Sneessens, Henri R., 2010. "Selective reductions in labor taxation: Labor market adjustments and macroeconomic performance," Journal of Policy Modeling, Elsevier, vol. 32(4), pages 531-543, July.
    4. Ron Smith & Gylfi Zoega, 2004. "Global Shocks and Unemployment Adjustment," Economics wp24_smith, Department of Economics, Central bank of Iceland.
    5. Huang, Emma Li-Hsuan & Huang, Julia Hsin-Yi, 2013. "Labor Market Reforms on the Unemployment Rate and Wage Payments in Europe," MPRA Paper 63248, University Library of Munich, Germany.
    6. Huang, Li-Hsuan & Huang, Julia Hsin-Yi, 2013. "Does Labor Market Rigidity Matter for Economic Performance? Evidence from the Four Asian Tigers," MPRA Paper 57905, University Library of Munich, Germany.
    7. James Banks & Richard Disney & Alan Duncan & John Van Reenen, 2005. "The Internationalisation of Public Welfare Policy," Economic Journal, Royal Economic Society, vol. 115(502), pages 62-81, March.
    8. Nikos Koutsiaras, 2010. "How to Spend it: Putting a Labour Market Modernization Fund in Place of the European Globalization Adjustment Fund," Journal of Common Market Studies, Wiley Blackwell, vol. 48(3), pages 617-640, June.
    9. Carlos J. Rodriguez-Fuentes & Antonio Olivera-Herrera & David Padron-Marrero, 2004. "Monetary policy and inflation persistence in the Eurozone," ERSA conference papers ersa04p218, European Regional Science Association.
    10. van Ours, J.C., 2003. "Has the Dutch Miracle Come to an End?," Other publications TiSEM fd377e7a-c4e4-45e2-bf8c-9, Tilburg University, School of Economics and Management.
    11. Ghazala Azmat & Alan Manning & John Van Reenen, 2007. "Privatization, Entry Regulation and the Decline of Labor's Share of GDP: A Cross-Country Analysis of the Network Industries," CEP Discussion Papers dp0806, Centre for Economic Performance, LSE.
    12. Stephen Nickell, 2004. "Poverty And Worklessness In Britain," Economic Journal, Royal Economic Society, vol. 114(494), pages 1-25, March.
    13. Anna Batyra & David de la Croix & Olivier Pierrard & Henri Sneessens, 2016. "Structural changes in the labor market and the rise of early retirement in Europe," DEM Discussion Paper Series 16-13, Department of Economics at the University of Luxembourg.
    14. Bartels, Bernhard, 2009. "The monetary transmission mechanism in the euro area: A VAR-analysis for Austria and Germany," Kiel Advanced Studies Working Papers 452, Kiel Institute for the World Economy (IfW).
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    16. Kox, Henk L.M., 2011. "The future of the fence around the European labour market," MPRA Paper 31722, University Library of Munich, Germany.
    17. Ms. Jianping Zhou, 2006. "Reforming Employment Protection Legislation in France," IMF Working Papers 2006/108, International Monetary Fund.
    18. Sener, Fuat, 2006. "Labor market rigidities and R&D-based growth in the global economy," Journal of Economic Dynamics and Control, Elsevier, vol. 30(5), pages 769-805, May.
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    22. Madelín Goméz-León & Pau Miret-Gamundi, 2014. "Working after age 50 in Spain. Is the trend towards early retirement reversing?," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 12(1), pages 115-140.
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    More about this item

    Keywords

    unemployment; institutions;

    JEL classification:

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

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