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 labor market adjustment processes, (b) the … growth drivers. Estimating a system of labor market equations for a panel of EU countries, we derive the dynamic unemployment …

symmetric marginal employment subsidies where firms are rewarded when they increase employment but punished when they reduce … their workforce, we consider an asymmetric scheme that only rewards employment expansion. This changes the incidence … employment and welfare. For moderate subsidy rates, all unions prefer to restrain their wage claims. At sufficiently high subsidy …

that unemployment affects life satisfaction and experienced utility differently may be explained by the fact that people do …

the share of the outsourced workforce is not too large, this wage-moderation effect on domestic employment outweighs the … direct substitution effect so that domestic employment increases in unionized firms as outsourcing costs fall. This does not … exemption and the unemployment benefit payments affect domestic wage setting in the same way as in the absence of outsourcing …

This paper analyzes the strikingly different response of unemployment to the Great Recession in France and Spain. Their … labor market institutions are similar and their unemployment rates just before the crisis were both around 8%. Yet, in … France, unemployment rate has increased by 2 percentage points, whereas in Spain it has shot up to 19% by the end of 2009. We …

In this paper, we attempt to renew the interest in marginal employment subsidies. Such subsidies are paid only for a … firm's additional employment exceeding some reference level and create larger employment stimuli at lower fiscal costs than … marginal subsidization), the replacement of regular paid workers by outsourcing employment to newly established firms - a …

to lower unemployment levels than predicted by the standard labour market model with heterogeneous labour and symmetric …

Many countries suffer from persistently high unemployment rates. The scope for labour market reforms is often limited … boost employment both in the short run and the long run. Calibrating the model and comparing the results with recent …