This paper develops a model with multiple steady states (low tax and unemployment rate versus high tax and unemployment … European unemployment rates observed during the seventies. The explanation given is that even if the unemployment rate would … job creation remains low making the return to a low unemployment rate impossible. The paper shows that in some cases …

. This paper assesses the role of structural factors and institutions in explaining the common patterns and main differences … suggests that laws and institutions such as product market regulations, unions and more coordinated wage-setting systems are …

institutions, the tax wedge definition, and the temporal focus significantly affect the results. In the long run, workers bear …

This study poses the question about whether labour market institutions can explain unemployment rates in the ten new … European Union member states. In five out of the ten new member states, unemployment rates lie above the average in the 15 … institutions in the acceding countries are less rigid than in the EU-15. Moreover, labour market institutions explain only a minor …