Why are European Countries Diverging in Their Unemployment Experience?

Saint-Paul, Gilles

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Why are European Countries Diverging in Their Unemployment Experience?

41 Pages Posted: 4 May 2004

See all articles by Gilles Saint-Paul

Gilles Saint-Paul

University of Toulouse I - GREMAQ-IDEI; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

There are 2 versions of this paper

Date Written: March 2004

Abstract

During the nineties, unemployment fell in a number of European countries while it remained high in others. This Paper discusses potential causes for that evolution in light of recent economic research, emphasizing obstacles to reform due to political constraints, the prevalence of ideology, and agency issues within those bureaucracies concerned with the unemployment problem. Some speculative thoughts are offered as to why those factors might be more stringent in countries where unemployment remained high.

Keywords: Unemployment, labour market reform, ideology, political economy, flexibility

JEL Classification: D70, E24, J60

Suggested Citation: Suggested Citation

Saint-Paul, Gilles, Why are European Countries Diverging in Their Unemployment Experience? (March 2004). Available at SSRN: https://ssrn.com/abstract=539743