In mid-2008, high employment and low unemployment rates characterised the Estonian labour marketin comparison with the average of the EU15 countries. While aggregate outcomes improvedduring 2000-07, large inequalities persisted across regions, ethnic groups, and workers with different...

Using annual data for 18 OECD countries over the period 1980-2004, we investigate howlabour and financial factors interact to determine unemployment by estimating a dynamicpanel model using the system generalized method of moments (GMM). We show that theimpact of financial variables depends...