Unemployment and Labor Market Rigidities

Unemployment and Labor Market Rigidities

Author: Denis Drechsler

Publisher: diplom.de

Published: 2004-12-02

Total Pages: 82

ISBN-13: 3832484655

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Inhaltsangabe:Abstract: Many European countries have experienced a significant increase of unemployment in recent years. Especially striking is the fact that unemployment rates in most European countries are significantly higher as compared to the United States. This paper reviews several theoretical models, which have been proposed to explain this phenomenon. Predominantly, these models claim a link between the poor performance of European labor markets and the high level of market regulation. Commonly referred to as the Eurosclerosis debate, prominent approaches consider insider-outsider relationships, search-models, and the influence of hiring and firing costs on equilibrium employment. The paper presents empirical evidence of each model and studies the relevance of the identified rigidities as a determining factor for high unemployment in Europe. Furthermore, a case study analyzes the unemployment problem in Germany and critically discusses recent reform efforts. Einleitung: In vielen europäischen Ländern ist die Arbeitslosigkeit in den vergangenen Jahren stark angestiegen. Besonders auffallend ist hierbei, das die Arbeitslosenrate in den meisten europäischen Staaten über den Werten in den USA liegt. Die vorliegende Arbeit untersucht eine Reihe theoretischer Modelle, die in der Literatur zur Erklärung dieses Phänomens diskutiert werden. Hauptsächlich sehen diese Modelle eine Verbindung zwischen dem hohen Grad an Marktregulierung und der schlechten Performance europäischer Arbeitsmärkte. Im Rahmen der so genannten Eurosclerosis-Debatte beleuchten mehrere Ansätze eine Insider-Outsider-Problematik, Such-Modelle, sowie den Einfluss von Einstellungs- und Kündigungsschutzregelungen (hiring- and firing-costs) auf die gleichgewichtige Beschäftigungsquote. Die Arbeit diskutiert die empirische Relevanz jedes Modells und analysiert insbesondere ihre Bedeutung als Erklärungsansatz für die hohe Arbeitslosigkeit in Europa. Darüber hinaus untersucht eine Fallstudie das Arbeitslosigkeitsproblem in Deutschland und diskutiert jüngste Reformmaßnahmen des so genannten Hartz-Programms. Insbesondere steht dabei die Frage im Vordergrund, ob einzelne Arbeitsmarktinstrumente wie Ich-AGs, Persönliche Service Agenturen (PSAs) sowie Mini- und Midijobs Abhilfe schaffen zu den in der Literatur identifizierten Beschäftigungshemmnissen. Inhaltsverzeichnis:Table of Contents: 1.Introduction1 2.Labor Market Rigidities and the European Unemployment [...]


Explaining Unemployment in Spain

Explaining Unemployment in Spain

Author: Mr.Jeffrey R. Franks

Publisher: International Monetary Fund

Published: 1994-09-01

Total Pages: 42

ISBN-13: 1451852576

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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.


Monetary Policy and the German Unemployment Problem in Macroeconomic Models

Monetary Policy and the German Unemployment Problem in Macroeconomic Models

Author: Jan Gottschalk

Publisher: Springer Science & Business Media

Published: 2007-04-29

Total Pages: 307

ISBN-13: 3540376798

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Having the high unemployment in Germany in mind, this book discusses how macroeconomic theory has evolved over the past forty years. It shows that in recent years a convergence has taken place, with modern models embodying a Keynesian transmission mechanism, monetarist policy implication, and modeling techniques inspired by new classical economics and real business cycle theory. It also probes in which direction models may be extended from here. Empirically, the book uses different econometric techniques to investigate the relevance and implications of different macroeconomic theories for German data. A key question this book investigates is the role of demand and supply side conditions for the increase in the German unemployment rate. On a policy level, the book relates the implications of the different theories to the ongoing debate on the appropriate roles of demand and supply side policies for curing the German unemployment problem.


Ibss: Economics: 2001

Ibss: Economics: 2001

Author: Compiled by the British Library of Political and Economic Science

Publisher: Psychology Press

Published: 2002-12

Total Pages: 708

ISBN-13: 9780415284011

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IBSS is the essential tool for librarians, university departments, research institutions and any public or private institution whose work requires access to up-to-date and comprehensive knowledge of the social sciences.


International Dimensions of Monetary Policy

International Dimensions of Monetary Policy

Author: Jordi Galí

Publisher: University of Chicago Press

Published: 2010-03-15

Total Pages: 663

ISBN-13: 0226278875

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United States monetary policy has traditionally been modeled under the assumption that the domestic economy is immune to international factors and exogenous shocks. Such an assumption is increasingly unrealistic in the age of integrated capital markets, tightened links between national economies, and reduced trading costs. International Dimensions of Monetary Policy brings together fresh research to address the repercussions of the continuing evolution toward globalization for the conduct of monetary policy. In this comprehensive book, the authors examine the real and potential effects of increased openness and exposure to international economic dynamics from a variety of perspectives. Their findings reveal that central banks continue to influence decisively domestic economic outcomes—even inflation—suggesting that international factors may have a limited role in national performance. International Dimensions of Monetary Policy will lead the way in analyzing monetary policy measures in complex economies.


The Future of the German Economy

The Future of the German Economy

Author: Rebecca Harding

Publisher: Manchester University Press

Published: 2000

Total Pages: 164

ISBN-13: 9780719060106

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Flagships of Imperialism is the first scholarly monograph on the history of the P&O shipping company, and the first history of P&O to pay due attention to the context of nineteenth century imperial politics which so significantly shaped the company's development. Based chiefly on unpublished material from the P&O archives and the National Archives, and on contemporary official publications, the book covers the crucial period from the company's origins to 1867. After presenting new findings about the company's origins in the Irish transport industry, the book charts the extension of the founders' interests from the Iberian peninsula to the Mediterranean, India, China and Australia. In so doing it deals with the development of the necessary financial infrastructure for P&O's operations; the founders' attitudes to technical advances; the shareholding base; the company's involvement in the opium trade, and with its acquisition of mail, Admiralty and other government contracts. It was the P&O's status as a government contractor which, above all else, implicated its fortunes in the wider politics of empire, as illustrated by the book's concluding account of the company's rescue from the edge of a financial precipice by the award of a new government mail contract prompted, among other things, by the Abyssinian expedition of 1867. Flagships of Imperialism will be of interest to transport and company historians and to historians of the British empire alike, as well as to anyone interested in the history of British ships and shipping in the nineteenth century.