This paper develops a model with multiple steady states (low tax and unemployment rate versus high tax and unemployment … European unemployment rates observed during the seventies. The explanation given is that even if the unemployment rate would … job creation remains low making the return to a low unemployment rate impossible. The paper shows that in some cases …

On the face of it, Austria’s labour market performs very well, which is reflected in one of the lowest unemployment … rates in the EU. However, while many of the euro area members have recently succeeded in reducing unemployment, the Austrian …. In addition the unemployment statistics are distorted by the relatively low labour force participation of older workers …

feature of the Finnish economy compared with that of Sweden and Denmark is the higher level of unemployment. In the early 1990 … adapt. The spectacular recovery of the Finnish economy has pushed up labour demand. While unemployment has fallen back from …

capable to generate business ßuctuations, driven by self-fulÞlling belief, characterised by unemployment persistence. A …