Our conclusions are that the most important influences on unemployment come from the following. (i) The longer unemployment benefits are available the longer unemployment lasts. Similarly, higher levels of benefits generate higher unemployment, with an elasticity of around one half. On the other...

The basic dilemma for any government is how to get more employment without also generating more inflation. Broadly, there are only three alternative approaches. The simplest is to rule out any form of incomes policy (outside the public sector). This is equivalent to accepting high levels of...