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The European Unemployment Dilemma
Abstract
Post‐World War II European welfare states experienced several decades of relatively low unemployment, followed by a plague of persistently high unemployment since the 1980s. We impute the higher unemployment to welfare states' diminished ability to cope with more turbulent economic times, such as the ongoing restructuring from manufacturing to the service industry, adoption of new information technologies, and a rapidly changing international economy. We use a general equilibrium search model in which workers accumulate skills on the job and lose skills during unemployment.
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Citations
Cited by
Search-Theoretic Models of the Labor Market: A Survey
Rogerson, R., Shimer, R., & Wright, R. (2005) · Journal of Economic Literature · doi:10.1257/002205105775362014 · Cited by 1,051
Recessions and the Costs of Job Loss
Davis, S. J., & von Wachter, T. (2011) · Brookings Papers on Economic Activity · doi:10.1353/eca.2011.0016 · Cited by 533
Explaining Changes in Female Labor Supply in a Life-Cycle Model
Attanasio, O., Low, H., & Sánchez-Marcos, V. (2008) · American Economic Review · doi:10.1257/aer.98.4.1517 · Cited by 435
Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions
(2006) · OECD Social, Employment and Migration Working Papers · doi:10.1787/702031136412 · Cited by 403
Prescott, E. C. (2002) · American Economic Review · doi:10.1257/000282802320188916 · Cited by 337
Metadata
- Authors
- Ljungqvist, L., & Sargent, T. J.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 1998-06
- Volume
- 106
- Issue
- 3
- Pages
- 514-550
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W2011997337
- Cited by
- 1,001
- References
- 0
- FWCI
- 67.65
- Type
- journal article
- Language
- en
- Open access
- closed
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
