Labor market frictions are not the only possible factor responsible for high unemployment. Credit market imperfections … European and US unemployment differ so much when labor markets have become more similar at the margin in Europe and the US. To …

The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the … disappointingly small effect of many past reform measures on unemployment, and the political difficulties in implementing more … implement broad-based reform strategies. Our analysis suggests that major unemployment policies are characterised by economic …