To the layperson, the upward trend in European unemployment is related to the slowdown in economic growth. We argue … that the layperson’s view is correct. The increase in European unemployment and the slowdown in economic growth are related …, and thus creates unemployment. Second, as firms substitute capital for labour, the marginal product of capital falls; over …

determine local wages and unemployment; when mobility between regions is obstructed by rent subsidies and controls, unemployment … and wage differentials arise. Because unemployment benefits set a floor beneath the supply price of labor, as these … differentials rise, so too does the national unemployment rate (in declining regions unemployment is the major response, in growing …

and talents in the transformation process. To a large extent, the emergence of unemployment is an indicator of this … restructuring and reallocation. This paper surveys some of the issues involved in the rise of CEE unemployment as well as the policy …

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 …

market performance. We find that developments in wage setting institutions and in unemployment insurance inhibited a return …

This Paper presents a reappraisal of unemployment movements in the European Union. Our analysis is based on the chain … reaction theory of unemployment, which focuses on (a) the interaction among labour market adjustment processes, (b) the … unemployment responses to each shock. Our analysis permits us to distinguish between the short- and long-run effects of the shocks …

The paper explores the influence of job security provisions on employment and unemployment. We show that this influence …’ bargaining power in wage negotiations. Specifically, costs of firing and hiring reduce employment and stimulate unemployment when … offers an explanation for Europe’s favourable unemployment performance vis-à-vis the United States in the 1950s and 1960s …

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

spirit of Blanchard and Summers (1988), the model can generate multiple equilibria, with a low-quits/high-unemployment … equilibrium coexisting with a high-quits/low-unemployment equilibrium. Under weak conditions, low-unemployment equilibria Pareto … dominate high-unemployment equilibria. Mobility premia improve aggregate welfare but may increase unemployment. …