Lecture 8

Lecture 8 - Unemployment and the labour market Paper 2:...

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Unformatted text preview: Unemployment and the labour market Paper 2: Macroeconomics Part IIA Unemployment and the Labour Market Lecture #8 Mauricio Prado jmp200@cam.ac.uk November 6, 2010 Unemployment and the labour market Paper 2: Macroeconomics Part IIA Todays outline Empirical analysis of unemployment Stylized facts of European unemployment Effectiveness of economic policies to combat unemployment Unemployment and the labour market Paper 2: Macroeconomics Part IIA Readings Bean (1994), "European Unemployment: A Survey", Journal of Economic Literature 32(2), June, pp. 573-619. Symposium on European Unemployment, Journal of Economic Perspectives, Summer 1997. Nickell, Nunziata and Ochel (2005), Explaining the Rise in Unemployment in Europe since the 1960s", Economic Journal 115, pp. 1-27. Blanchard, O. (2005), "European unemployment: the evolution of facts and ideas", NBER Working Paper 11750 Unemployment and the labour market Paper 2: Macroeconomics Part IIA Unemployment across countries Unemployment in the U.S., Europe, and Japan Unemployment and the labour market Paper 2: Macroeconomics Part IIA European unemployment First, what explains the common experience within the European Community? And, second, what explains the contrast with the rest of the OECD? Unemployment and the labour market Paper 2: Macroeconomics Part IIA The nature of unemployment TABLE 2 The Nature of Unemployment Annual Inflows Annual Outflows Long-Term Unemployment (percentage of source population) (percentage of total unemployment) European 1979 0.27 9.8 29.3 Community 1988 0.33 5.0 54.8 United States 1979 2.07' 43.5 4.2 1988 1.98 45.7 7.4 Japan 1979 0.31 19.1 16.5 1988 0.37 17.2 20.6 Non-EC 1979 0.70 38.1 5.3 Europea 1988 0.80 30.4 7.3 Source: Author's calculations based on Table 1.2 of OECD (1990) Note: a Nordic countries only Unemployment and the labour market Paper 2: Macroeconomics Part IIA The nature of unemployment Bean: European Unemployment: A Survey 575 20.0 United States 20.0 European Community 17.5 17.5 15.0 15.0 1975 1980 .~12.5 .~12.5 10.0 195 ~10.0 7.5 ~7.5 1982 1985 5.0 5.0 2.5 1967 19 1992 2.5 1967 0.0 0.0 0.0 2.5 5.0 7.5 10.0 12.5 0.0 2.5 5.0 7.5 10.0 12.5 Unemployment Rate (%) Unemployment Rate (%) 20.0 Non-EC Europe 20.0 1974 Japan 17.5 17.5 g 15.0 g 15.0 X 12.5 X 12.5 1974 1. - 10.0 1982 10 7.575 5.0 ~~~~ ~~~~~~5.0 1978 5.01969 2.5 1969 2.5 1986 1992 1990D 0.0- 0.0- , 0.0 2.5 5.0 7.5 10.0 12.5 0.0 2.5 5.0 7.5 10.0 12.5 Unemployment Rate (%) Unemployment Rate (%) Figure 2. Inflation v. Unemployment, 1967-1992 Unemployment and the labour market Paper 2: Macroeconomics Part IIA Sibert: Labour market rigidities Existence of a dual labour market in most European countries. ThereExistence of a dual labour market in most European countries....
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This note was uploaded on 03/07/2012 for the course ECON 201 taught by Professor Cowell during the Spring '10 term at LSE.

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Lecture 8 - Unemployment and the labour market Paper 2:...

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