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In the 1970s, European unemployment started increasing. It increased further in the 1980s, to reach a plateau in the 1990s. It is still high today, although the average unemployment rate hides a high degree of heterogeneity across countries. The focus of researchers and policy makers was initially on the role of shocks. As unemployment remained high, the focus has progressively shifted to institutions. This paper reviews the interaction of facts and theories, and gives a tentative assessment of what we know and what we still do not know. Keywords: unemployment, institutions, shocks, hysteresis, labor market. JEL Classifications: E4, J6.
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European unemployment: the evolution of facts and ideas
2005, Massachusetts Institute of Technology, Dept. of Economics
in English
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Edition Notes
"October 10, 2005."
Includes bibliographical references (p. 54-59).
Abstract in HTML and working paper for download in PDF available via World Wide Web at the Social Science Research Network.
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