reaction theory of unemployment, which focuses on (a) the interaction among labour market adjustment processes, (b) the …This Paper presents a reappraisal of unemployment movements in the European Union. Our analysis is based on the chain … interplay between these adjustment processes and the dynamic structure of labour market shocks, and (c) the interaction between …

This paper explores the two common concepts of the natural rate of unemployment: (i) the stable, long-run equilibrium … rate of unemployment; and (ii) the equilibrium unemployment rate at which there is no tendency for this rate to change … towards which the equilibrium unemployment rate tends with the passage of time). Specifically, it is not a reference point in …

This paper evaluates two theories of unemployment: the natural rate theory (whereby unemployment is depicted as … fluctuating around a reasonably stable natural rate) and the chain reaction theory (which views movements in unemployment as the … outcome of the interplay between labour market shocks and a network of lagged adjustment processes). We show that, for labour …

-run unemployment rate) and the lag structure of the employment determination, wage setting, and labour force participation decisions … the `fragility' of the short-run unemployment equilibrium (the impact of labour market shocks on the short …This paper attempts to explain disparities among the unemployment experiences of different OECD countries in terms of …

This paper views movements in unemployment as the result of the interaction between: (a) lags in labour market … decisions; and (b) labour market shocks with temporary and permanent components. Two features of unemployment dynamics are … examined: (i) `unemployment persistence', arising when temporary shocks have persistent effects on unemployment; and (ii …

It is widely believed that the integration of European economies will have little impact on labour mobility. This does … not mean, however, that European labour markets will be unaffected by the process of economic integration. In this paper …

reductions in other sectors. The union campaign aimed to increase employment through ‘work-sharing’, and is being emulated in the …

relative to male wages, but female employment has fallen 5 percentage points more than male employment. Using the German Socio … of the hazard rate from employment. Differences in mean 1990 wages explain more than one-half of the gender gap in this … hazard rate, since low earners were more likely to leave employment, and were disproportionately female. The withdrawal from …

lower unemployment. Whether ‘work-sharing’ works – whether employment rises when hours per worker are reduced – is … standard hours, employment rose by 0.3–0.7%, but that total hours worked fell by 2–3%, implying possible output losses. As a … group, however, workers were better off as the wage bill rose. The employment growth implied by the mean standard hours …