Online from: 1988
|Author(s):||Blanchard O, Bean C, Münchau W|
|Journal:||Economic Policy, Jan 2006, Volume: 45 pp.5-58 (54 pages)|
|Keywords:||European Union, Public Policy, Social Change, Trade Unions, Unemployment|
|Article type:||Literature review|
|Reference:||35AG392 (Permanent URL)|
Design/methodology/approach - Analyses unemployment rates by EU country, its triggers and persistence, tax factors and institutions, and current research directions.
Findings - Finds that unemployment rose because of real wage resistance in the 1970s, followed by inflation. In accounting for its persistence in the 1980s, focuses on the effect of capital decumulation on labour and the absence of the unemployed from wage bargaining. Attributes its continuation in the 1990s to institutional factors and regulations in specific countries.
Research limitations/implications - Suggests studying how reforms can be forced through in a crisis or as part of a bundle of general reforms; and why the Phillips curve has flattened.
Practical implications - Produces eight policy recommendations.
Originality/value - Presents an excellent summary of the theory and evidence surrounding European unemployment, and explicit policies to be followed.