Explaining Unemployment in Spain

Explaining Unemployment in Spain PDF Author: Mr.Jeffrey R. Franks
Publisher: International Monetary Fund
ISBN: 1451852576
Category : Business & Economics
Languages : en
Pages : 42

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Book Description
Spain has the most serious and persistent unemployment problem in Europe, with an unemployment rate that reached 24.6 percent in early 1994. This paper explores the characteristics of this unemployment problem, its causes, and provides a brief discussion of recent labor market reform measures and their likely Impact. A demographic shift in recent years has produced a large rise in female labor force participation and a decrease in agricultural jobs to which the economy has been unable to adjust. The effects of generous unemployment benefits and the large underground economy may explain 6–12 percentage points of the resulting unemployment, but the remainder must be explained by failures and rigidities in the labor market. The paper presents econometric evidence that unemployment displays hysteresis, and that wages are not responsive to changes in the unemployment rate. This evidence supports the claim that insider-outsider factors and rigidities in the legal structure of the labor market are responsible for much of the high unemployment rate. Recent reforms have improved the functioning of the labor market, but they are unlikely to be sufficient to reduce unemployment to single digit rates without further action.

Explaining Unemployment in Spain

Explaining Unemployment in Spain PDF Author: Mr.Jeffrey R. Franks
Publisher: International Monetary Fund
ISBN: 1451852576
Category : Business & Economics
Languages : en
Pages : 42

Get Book Here

Book Description
Spain has the most serious and persistent unemployment problem in Europe, with an unemployment rate that reached 24.6 percent in early 1994. This paper explores the characteristics of this unemployment problem, its causes, and provides a brief discussion of recent labor market reform measures and their likely Impact. A demographic shift in recent years has produced a large rise in female labor force participation and a decrease in agricultural jobs to which the economy has been unable to adjust. The effects of generous unemployment benefits and the large underground economy may explain 6–12 percentage points of the resulting unemployment, but the remainder must be explained by failures and rigidities in the labor market. The paper presents econometric evidence that unemployment displays hysteresis, and that wages are not responsive to changes in the unemployment rate. This evidence supports the claim that insider-outsider factors and rigidities in the legal structure of the labor market are responsible for much of the high unemployment rate. Recent reforms have improved the functioning of the labor market, but they are unlikely to be sufficient to reduce unemployment to single digit rates without further action.

Structural Unemployment in Western Europe

Structural Unemployment in Western Europe PDF Author: Martin Werding
Publisher: MIT Press
ISBN: 0262232464
Category : Structural unemployment
Languages : en
Pages : 361

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Book Description
Leading international economists examine the different patterns and long-term trends behind persistent unemployment across Western Europe in light of recent developments in labor market theory. Structural unemployment, or persistently high levels of unemployment that do not follow the ups and downs of a typical business cycle, varies significantly across industrialized countries. In this CESifo volume, leading labor economists analyze the widely diverging patterns of long-term unemployment across Western Europe. Drawing on recent developments in labor market theory and macroeconomics to explain the emergence and persistence of unemployment, the studies look for fundamental explanations and common patterns that might lead to policy solutions.The two opening chapters offer overviews of the problem: European labor market expert Stephen Nickell highlights the unemployment situation in the "Big Four" continental European states of France, Germany, Italy, and Spain, and American economist Edmund S. Phelps focuses on new theoretical approaches that examine institutional factors influencing unemployment in a given country. Following these introductory essays, prominent economists consider the experiences of their home countries, in chapters on Denmark, Sweden, the Netherlands, Finland, Ireland, the United Kingdom, France, Germany, Italy, and Spain. By taking advantage of the richness of research conducted at a national level and making the work accessible to an international audience, this volume contributes to a new understanding of structural unemployment and how it can be overcome through labor market reforms and other economic policy measures. Contributors Torben Andersen, Samuel Bentolila, Norbert Berthold, Guiseppe Bertola, Rainer Fehn, Pietro Garibaldi, Bertil Holmlund, Juan F. Jimeno, Erkki Koskela, Stephen J. Nickell, Jan C. van Ours, Edmund S. Phelps, Jean Pisany-Ferry, Christopher Pissarides, Roope Uusitalo, Brendan Walsh, Martin Werding

Problems of the Modern Economy

Problems of the Modern Economy PDF Author: Edward C. Budd
Publisher: W. W. Norton
ISBN: 9780393096903
Category : Business & Economics
Languages : en
Pages : 484

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Book Description


Structural Unemployment in Luxembourg: Bad Luck or Rational Choice?

Structural Unemployment in Luxembourg: Bad Luck or Rational Choice? PDF Author: William Gbohoui
Publisher: International Monetary Fund
ISBN: 1513519999
Category : Business & Economics
Languages : en
Pages : 42

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Book Description
This paper combines both micro and macro approaches to identify the drivers of (un)employment and inactivity in Luxembourg. The young, low-skilled, and non-EU migrants are found to be the most vulnerable groups in the labor market. In addition to skills mismatches, work disincentives embedded in the tax-benefit system constitute a factor explaining structural unemployment. High unemployment of young and low-skilled workers reflects substantial unemployment traps, while disincentives for second earners (respectively the generosity of the pension system) contribute to lower labor market participation of women (respectively seniors). Further reduction of structural unemployment requires better integration of vulnerable groups into the labor market and improved targeting of benefits to make work more rewarding.

Emigration and Its Economic Impact on Eastern Europe

Emigration and Its Economic Impact on Eastern Europe PDF Author: Mr.Ruben Atoyan
Publisher: International Monetary Fund
ISBN: 1498367453
Category : Social Science
Languages : en
Pages : 48

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Book Description
This paper analyses the impact of large and persistent emigration from Eastern European countries over the past 25 years on these countries’ growth and income convergence to advanced Europe. While emigration has likely benefited migrants themselves, the receiving countries and the EU as a whole, its impact on sending countries’ economies has been largely negative. The analysis suggests that labor outflows, particularly of skilled workers, lowered productivity growth, pushed up wages, and slowed growth and income convergence. At the same time, while remittance inflows supported financial deepening, consumption and investment in some countries, they also reduced incentives to work and led to exchange rate appreciations, eroding competiveness. The departure of the young also added to the fiscal pressures of already aging populations in Eastern Europe. The paper concludes with policy recommendations for sending countries to mitigate the negative impact of emigration on their economies, and the EU-wide initiatives that could support these efforts.

The West European Employment Problem

The West European Employment Problem PDF Author: Assar Lindbeck
Publisher:
ISBN: 9783894561314
Category : Europe
Languages : en
Pages : 0

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Book Description


Retraining and Labor Market Adjustment in Western Europe

Retraining and Labor Market Adjustment in Western Europe PDF Author: Margaret S. Gordon
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 252

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Book Description
Contents: Postwar labor market development; Retraining in the first postwar decade, 1945-1955; Retraining in tighter labor markets, 1955-1964; Older workers, younger workers, and other special groups; Results of retraining; Current and future problems.

Western Europe in Transition

Western Europe in Transition PDF Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451954506
Category : Business & Economics
Languages : en
Pages : 194

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Book Description
This paper examines the impact of the opening up of Eastern Europe and the Former Soviet Union on Western Europe. The analysis suggests that given reasonable (yet necessarily imprecise) assumptions on the likely developments in the previously centrally planned economies (PCPEs) over the next ten years, West European capital markets are likely to experience only a mild squeeze from their concerted efforts to provide external financing to the East. Most macroeconomic aggregates are likely to suffer shocks significantly smaller than would be expected from a typical business cycle.

Taxation and Unemployment

Taxation and Unemployment PDF Author: Mr.Howell H. Zee
Publisher: International Monetary Fund
ISBN: 1451974345
Category : Business & Economics
Languages : en
Pages : 56

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Book Description
This paper reviews conceptual linkages between taxation and unemployment, available empirical evidence and country policies that may have a bearing on these linkages in the OECD and in a sample of developing and transitional economies, Fund policy advice on these issues, and tax policy options in addressing the unemployment problem. It concludes that the emphasis in policy should be placed on minimizing tax distortions, rather than on formulating activist tax policies to reduce unemployment.

Comparative Politics: Western Europe and the United States: foundations of comparative politics

Comparative Politics: Western Europe and the United States: foundations of comparative politics PDF Author:
Publisher: Taylor & Francis
ISBN: 9780415330947
Category : Comparative government
Languages : en
Pages : 408

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Book Description