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Public Policy and Unemployment in Interwar France: An Empirical Approach

  • Tony Syme
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    This paper introduces an empirical model of the French interwar labour market that is comparable to models developed for the British labour market for this period, yet incorporates specific extensions in order to capture the peculiarities of the French case. The result is a model that can very accurately stimulate the movement of unemployment in the 1920s and 1930s and this is used to run a series of counterfactual simulations to estimate the labour market effects of various public policies adopted at the time. Of particular note is the result that the repatriation drive of the early 1930s had no significant effect on the size of foreign labour force by 1936 and that the decision to remain on the Gold Standard until 1936 raised unemployment each year by more than primary policies introduced to combat unemployment - public works and repatriation of foreign workers - reduced it.

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    File URL: http://www.economics.ox.ac.uk/materials/working_papers/paper055.pdf
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    Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 55.

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    Date of creation: 01 Dec 2000
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    Handle: RePEc:oxf:wpaper:55
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    Web page: http://www.economics.ox.ac.uk/
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    1. Nadiri, M Ishaq & Rosen, Sherwin, 1969. "Interrelated Factor Demand Functions," American Economic Review, American Economic Association, vol. 59(4), pages 457-71, Part I Se.
    2. Beenstock, Michael & Warburton, Peter J, 1986. "The Market for Labour in Interwar Britain," CEPR Discussion Papers 105, C.E.P.R. Discussion Papers.
    3. Broadberry, S N, 1986. "Aggregate Supply in Interwar Britain," Economic Journal, Royal Economic Society, vol. 96(382), pages 467-81, June.
    4. Jacques Marseille, 1980. "Les origines « inopportunes » de la crise de 1929 en France," Revue Économique, Programme National Persée, vol. 31(4), pages 648-684.
    5. Ben S. Bernanke, 1985. "Employment, Hours, and Earnings in the Depression: An Analysis of EightManufacturing Industries," NBER Working Papers 1642, National Bureau of Economic Research, Inc.
    6. Lindbeck, A. & Snower, D.J., 1989. "Demand- And Supply-Side Policies And Unemployment: Policy Implications Of The Insider-Outside Approach," Papers 439, Stockholm - International Economic Studies.
    7. Rosen, Sherwin & Nadiri, M Ishaq, 1974. "A Disequilibrium Model of Demand for Factors of Production," American Economic Review, American Economic Association, vol. 64(2), pages 264-70, May.
    8. Hatton, T J, 1988. "A Quarterly Model of the Labour Market in Interwar Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 50(1), pages 1-25, February.
    9. Kokkelenberg, Edward C, 1983. "Interrelated Factor Demands Revisited," The Review of Economics and Statistics, MIT Press, vol. 65(2), pages 342-47, May.
    10. Barry J. Eichengreen & Jeffrey Sachs, 1984. "Exchange Rates and Economic Recovery in the 1930s," NBER Working Papers 1498, National Bureau of Economic Research, Inc.
    11. Benjamin, Daniel K & Kochin, Levis A, 1979. "Searching for an Explanation of Unemployment in Interwar Britain," Journal of Political Economy, University of Chicago Press, vol. 87(3), pages 441-78, June.
    12. Assar Lindbeck & Dennis J. Snower, 1989. "The Insider-Outsider Theory of Employment and Unemployment," MIT Press Books, The MIT Press, edition 1, volume 1, number 026262074x, June.
    13. Eichengreen, Barry & Hatton, Tim, 1988. "Interwar Unemployment in International Perspective," Institute for Research on Labor and Employment, Working Paper Series qt7bw188gk, Institute of Industrial Relations, UC Berkeley.
    14. Dimsdale, Nicholas H & Horsewood, Nicholas, 1995. "Fiscal Policy and Employment in Interwar Britain: Some Evidence from a New Model," Oxford Economic Papers, Oxford University Press, vol. 47(3), pages 369-96, July.
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