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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/3061| Title: | Unemployment in the European Union: institutions, prices, and growth |
| Keywords: | J64 E30 E37 J32 J60 ddc:330 unemployment , natural rate , labor market shocks , chain reaction theory Arbeitslosigkeit Hysteresis Schock Arbeitsmarktflexibilisierung Internationaler Wettbewerb Konjunktur Schätzung EU-Staaten |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Forschungsinstitut zur Zukunft der Arbeit, Bonn |
| Description: | 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 interplay between these adjustment processes and the dynamic structure of labor market shocks, and (c) the interaction between the adjustment processes and economic growth. We divide the shocks into institutional variables, price variables, and growth drivers. Estimating a system of labor market equations for a panel of EU countries, we derive the dynamic unemployment responses to each shock. Our analysis permits us to distinguish between the short- and longrun effects of the shocks. Different shocks generate different degrees of "unemployment persistence" (responses to temporary shocks) and "unemployment responsiveness" (responses to permanent shocks). We find that the growth drivers play a dominant role in accounting for the main swings in EU unemployment. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/3061 |
| Other Identifiers: | IZA discussion papers Forschungsinstitut zur Zukunft der Arbeit, Bonn 899 http://hdl.handle.net/10419/3061 ppn:372030475 |
| Appears in Collections: | EconStor |
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