America, Oceania, and East Asia. This has led to low labor force participation and high unemployment, especially among young … unnecessary evil. Restructuring unemployment and pension benefits will help to increase participation and reverse the decline of …

Why do many democracies fail to reform their labor market institutions? We study the feasibility of reforms that … unemployment may be constrained Pareto-efficient. Consequently, no reform is accepted unanimously by voters. We show that this … low rates of unemployment can be removed in the political process while high rates of unemployment tend to be politically …