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The Human Cost of Recessions; Assessing It, Reducing It

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  • Mai Dao
  • Prakash Loungani

Abstract

Recessions leave scars on the labor market. Over 200 million people across the globe are estimated to be unemployed at present resulting from the Great Recession of 2007–09. We assess the human cost of increased unemployment by surveying what is known about the effects of past recessions. If past is prologue, the cost to the unemployed (and society) could be high. The focus of this paper is on advanced economies. To their credit, most countries mounted strong policy responses to minimize the human costs, and the policy actions were notable also for their consistency and coherence across countries.

Suggested Citation

  • Mai Dao & Prakash Loungani, 2010. "The Human Cost of Recessions; Assessing It, Reducing It," IMF Staff Position Notes 2010/17, International Monetary Fund.
  • Handle: RePEc:imf:imfspn:2010/17
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    Cited by:

    1. Krainer, Robert E., 2012. "Regulating Wall Street: The Dodd–Frank Act and the New Architecture of Global Finance, a review," Journal of Financial Stability, Elsevier, vol. 8(2), pages 121-133.
    2. Urbanos-Garrido, Rosa M. & Gonzalez Lopez-Valcarcel, Beatriz, 2013. "Desempleo y salud: Un análisis de la repercusión de la crisis económica sobre la salud de los españoles/Unemployment and Health: An Analysis of the Impact of the Economic Crisis on the Health of the S," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 31, pages 303-326, Septiembr.
    3. Elva Bova & Christina Kolerus & Sampawende Tapsoba, 2015. "A fiscal job? An analysis of fiscal policy and the labor market," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-17, December.

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