European unemployment: the evolution of facts and ideas

By Olivier J. Blanchard. 2006

709 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/d2284b234afdcdf05d2bb1d7d7e051b4fc87664a

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Citations in the corpus

Downward Nominal and Real Wage Rigidity: Survey Evidence from European Firms (2009, neutral): “The analysis in the current paper is based on a survey of firms conducted between the second half of 2007 and the first quarter of 2008 in 15 European Union countries: Austria, Belgium, the Czech Republic, Estonia, France, Greece, Hungary, Ireland, Italy, the Netherlands, Lithuania, Poland, Portugal”
Barriers to entry: insider/outsider politics and the political determinants of job security regulations (2009, background): “A decline in productivity growth due to the rapid de-industrialization had been observed, but, surprisingly, wage setters did Journal of European Social Policy 2009 19 (2) not seem to adjust to the new reality of lower productivity growth (Blanchard, 2006: 19).”
Unemployment and Subjective Well-being (2010, background): “in the regulation of the labour market, formation of wages and social security benefits, it is not possible to reach a lower level of unemployment with stable prices (Nickell, 1997; Blanchard, 2006).”
The Role of Labor Markets for Euro Area Monetary Policy (2009, neutral): “2 As stressed by Blanchard and Gali (2007), welfare-based conclusions regarding the optimal design of monetary policy may depend on the interaction between real imperfections and shocks in the model.”
Can Budget Institutions Counteract Political Indiscipline? (2006, methodology): “In essence, as Blanchard and Wolfers (2000) note, the methodology evaluates whether the shocks persist longer if the deeper determinants are more salient.”
Understanding the Dynamics of Labor Shares and Inflation (2011, neutral): “πt = βEtπt+1 + (1 − θ) (1 − θβ) θ (mct + log μ) , (4) where mct = mc n t − pt (5) is real marginal cost.”
Learning Your Comparative Advantages (2014, methodology): “i 2 p(2) (1 p)(2) J 00 i (p) (1 i) Jk (p) (9)”
Spatial Dependence in Local Unemployment Rates (2007, methodology): “By using the properties of the matching function, it is easy to see that ∂g(θi) ∂θi > 0 (5)”
Labor Market Flexibility and Unemployment: New Empirical Evidence of Static and Dynamic Effects (2012, background): “While data available for our large set of countries lack the necessary level of details to answer this question, micro- and macro-studies on OECD countries over the decade showed that it is important to protect workers, rather than jobs, by coupling of unemployment benefits with pressure on unemploy”
The macroeconomics of the labor market: three fundamental views (2007, neutral): “w = μ 1 1 ¶ (K N )(1) ̧ + (1 ) (N S )(1) (6)”
Trade and Unemployment: What Do the Data Say? (2011, background): “Finally, models (9) and (10) are the most comprehensive in that they include a list of labor market covariates provided by Botero et al.”
A Common Neoliberal Trajectory (2011, background): “” Institutional deregulation involves one or more of the following: a shift from higher levels of collective bargaining to lower ones, closer to the firm or workplace; greater recourse to individual bargaining between employee and employer or unilateral employer decision making; a shrinking in the c”
Recent Declines in Labor's Share in US Income: A Preliminary Neoclassical Account (2015, neutral): “See also: (O. Blanchard 1997, O. Blanchard 2006).”
Youth Labour Market Integration Across Europe (2014, background): “The business-cycle plays an important role in explaining these country differences (Blanchard 2006).”