Abstract

https://ssrn.com/abstract=904707
 


 



Long-Term Unemployment, the Invention of 'Hysteresis' and the Misdiagnosis of Structural Unemployment in the UK


David Webster


Government of the United Kingdom - Glasgow City Council


Cambridge Journal of Economics, Vol. 29, Issue 6, pp. 975-995, 2005

Abstract:     
This paper investigates the empirical basis for the belief that unemployment makes people less employable', and that the existence of a pool of long-term unemployed people is therefore in itself a barrier to full employment. Drawing on data for Great Britain from the 1940s to the present day, it shows that this idea has arisen through misinterpretations of the statistical evidence. The resulting policies, besides diverting resources from the demand-side programmes appropriate to the true situation of structural unemployment, appear to have created a problem of the kind they were intended to address, by encouraging unemployed people to move onto sickness benefits.

Keywords: Long-term unemployment, Unemployment persistency, Hysteresis, Employability, State dependence


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Date posted: February 29, 2008  

Suggested Citation

Webster, David, Long-Term Unemployment, the Invention of 'Hysteresis' and the Misdiagnosis of Structural Unemployment in the UK. Cambridge Journal of Economics, Vol. 29, Issue 6, pp. 975-995, 2005. Available at SSRN: https://ssrn.com/abstract=904707

Contact Information

David Webster (Contact Author)
Government of the United Kingdom - Glasgow City Council ( email )
Glasgow Scotland
United Kingdom
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