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Unemployment
Kinds of Unemployment Terms modified by Unemployment Selected AbstractsTHE UNEMPLOYMENT PARADIGMS REVISITED: A COMPARATIVE ANALYSIS OF U.S. STATE AND EUROPEAN UNEMPLOYMENTCONTEMPORARY ECONOMIC POLICY, Issue 3 2009DIEGO ROMERO-ÁVILA This article tests the main unemployment paradigms for the unemployment rates of the states of the United States and the European Union,15 countries over the past three decades. For that purpose, we employ a state-of-the-art panel stationarity test, which allows for an unknown number of endogenous structural breaks as well as for cross-sectional correlation. Overall, our analysis renders clear-cut evidence in favor of regime-wise stationarity in U.S. state unemployment, while hysteresis in European unemployment. Interestingly, the timing of the breaks broadly coincides with major macroeconomic shocks mainly associated with the oil crises of the 1970s and marked changes in interest rates in the 1980s and early 1990s. Based on our results, we draw some policy prescriptions that point to the need for greater flexibility in the European labor markets. (JEL C23, E24) [source] AN ON-THE-JOB SEARCH MODEL OF CRIME, INEQUALITY, AND UNEMPLOYMENT*INTERNATIONAL ECONOMIC REVIEW, Issue 3 2004Kenneth Burdett We extend simple search models of crime, unemployment, and inequality to incorporate on-the-job search. This is valuable because, although simple models are useful, on-the-job search models are more interesting theoretically and more relevant empirically. We characterize the wage distribution, unemployment rate, and crime rate theoretically, and use quantitative methods to illustrate key results. For example, we find that increasing the unemployment insurance replacement rate from 53 to 65 percent increases unemployment and crime rates from 10 and 2.7 percent to 14 and 5.2 percent. We show multiple equilibria arise for some fairly reasonable parameters; in one case, unemployment can be 6 or 23 percent, and crime 0 or 10 percent, depending on the equilibrium. [source] MIND THE GAP: UNEMPLOYMENT IN THE NEW EU REGIONSJOURNAL OF ECONOMIC SURVEYS, Issue 1 2008Anna Maria Ferragina Abstract The paper surveys the theoretical and empirical literature on regional unemployment during transition in Central and Eastern Europe. The focus is on optimal speed of transition (OST) models and on comparison of them with the neo-classical tradition. In the typical neo-classical models, spatial differences essentially arise as a consequence of supply side constraints and institutional rigidities. Slow-growth, high-unemployment regions are those with backward economic structures and constraints on factors mobility contribute to making differences persistent. However, such explanations leave the question unanswered of how unemployment differences arise in the first place. Economic transition provides an excellent testing ground to answer this question. Pre-figuring an empirical law, the OST literature finds that the high degree of labour turnover of high unemployment regions is associated with a high rate of industrial restructuring and, consequently, that low unemployment may be achieved by implementing transition more gradually. Moreover, international trade, foreign direct investment and various agglomeration factors help explain the success of capital cities compared to peripheral towns and rural areas in achieving low unemployment. The evidence of the empirical literature on supply side factors suggests that wage flexibility in Central and Eastern Europe is not lower than in other EU countries, while labour mobility seems to reinforce rather than change the spatial pattern of unemployment. [source] THE LIQUIDITY TRAP AND PERSISTENT UNEMPLOYMENT WITH DYNAMIC OPTIMIZING AGENTS: EMPIRICAL EVIDENCETHE JAPANESE ECONOMIC REVIEW, Issue 4 2004YOSHIYASU ONO Standard money-in-utility dynamic models assume satiable liquidity preference, and thereby prove the existence of a full-employment steady state. In the same framework, it is known that under insatiable liquidity or wealth preference there is a case where a full-employment steady state does not exist. A liquidity trap then arises and unemployment persists in the steady state. Using both parametric and non-parametric methods, this paper empirically finds that insatiable liquidity/wealth preference is better supported. Thus, without assuming any permanent distortion, we can analyse an effective demand shortage in a dynamic optimization framework. [source] THE EVOLUTION OF INFLATION AND UNEMPLOYMENT: EXPLAINING THE ROARING NINETIESAUSTRALIAN ECONOMIC PAPERS, Issue 4 2008MARIKA KARANASSOU This paper analyses the relation between US inflation and unemployment from the perspective of ,frictional growth,' a phenomenon arising from the interplay between growth and frictions. In particular, we focus on the interaction between money growth and nominal frictions. In this context we show that monetary policy has not only persistent, but permanent real effects, giving rise to a long-run inflation-unemployment tradeoff. We evaluate this tradeoff empirically and assess the impact of productivity, money growth, budget deficit, and trade deficit on the US unemployment and inflation trajectories during the nineties. [source] HYSTERESIS IN UNEMPLOYMENT REVISITED: EVIDENCE FROM PANEL LM UNIT ROOT TESTS WITH HETEROGENEOUS STRUCTURAL BREAKSBULLETIN OF ECONOMIC RESEARCH, Issue 4 2009Jun-De Lee C22; C23; J64 ABSTRACT This paper applies the panel LM unit root tests with heterogeneous structural breaks in level by Im,et al. (Oxford Bulletin of Economics and Statistics, 67 (2005), pp. 393,419) to re-examine the validity of hysteresis in the unemployment rates of 19 OECD countries. Our empirical findings are favourable to the stationarity of the unemployment rates, i.e., the unemployment hysteresis hypothesis is strongly rejected. Our results suggest that shocks to unemployment rates are temporary and soon converge when we control for breaks. A major policy implication of the study is that a fiscal or monetary stabilization policy would not have permanent effects on the unemployment rates of the 19 OECD countries. [source] THE RELATIONSHIP BETWEEN CAPITAL STOCK, UNEMPLOYMENT AND WAGES IN NINE EMU COUNTRIESBULLETIN OF ECONOMIC RESEARCH, Issue 2 2007Philip Arestis E00; E22; E24 ABSTRACT The focus of this paper is to investigate the importance of the capital stock in the determination of wages and unemployment in a range of EMU countries and to compare the results across countries. A time-series analysis is conducted in the case of nine euro area countries, which were selected solely on the basis of data availability and consistency: Austria, Belgium, Finland, France, Germany, Italy, Ireland, the Netherlands and Spain. The paper begins with a short review of the literature on capital stock and unemployment, before it deals with the theoretical model. This is followed by estimation and testing of the theoretical model put forward, using both time-series and panel data. The results are supportive of the main hypothesis of the paper: capital stock is an important determinant of unemployment and wages in the countries considered for the purposes of the paper. [source] Social integration in young adulthood and the subsequent onset of substance use and disorders among a community population of urban African AmericansADDICTION, Issue 3 2010Kerry M. Green ABSTRACT Aims This paper examines the association between social integration in young adulthood and the later onset of substance use and disorders through mid-adulthood. Design Data come from a community cohort of African Americans followed longitudinally from age 6,42 years with four assessment periods. Setting The cohort all lived in the Woodlawn neighborhood of Chicago in 1966, an urban disadvantaged setting. Participants All Woodlawn first graders in 1966 were asked to participate; 13 families declined (n = 1242). Measurement Substance use was measured via interview at age 42 and includes the onset of alcohol and drug use disorders and the onset of cocaine/heroin use between ages 32 and 42 years. Social integration measures were assessed via interview at age 32 and include social roles (employee, spouse, parent), participation in religious and social organizations and a measure of overall social integration. Control variables were measured in childhood and later in the life course. Findings Multivariate regression analyses suggest that unemployment, being unmarried, infrequent religious service attendance and lower overall social integration in young adulthood predict later adult-onset drug use disorders, but not alcohol use disorders once confounders are taken into consideration. Unemployment and lower overall social integration predict onset of cocaine/heroin use later in adulthood. Conclusions Results show meaningful onset of drug use and substance use disorders during mid-adulthood and that social integration in young adulthood seems to play a role in later onset of drug use and drug disorders, but not alcohol disorders. [source] Unemployment, growth and taxation in industrial countriesECONOMIC POLICY, Issue 30 2000Francesco Daveri To the layman, the upward trend in European unemployment is related to the slowdown of economic growth. We argue that the layman's view is correct. The increase in European unemployment and the slowdown in economic growth are related, because they stem from a common cause: an excessively rapid growth in the cost of labour. In Europe, labour costs have gone up for many reasons, but one is particularly easy to identify: higher taxes on labour. If wages are set by strong and decentralized trade unions, an increase in labour taxes is shifted onto higher real wages. This has two effects. First, it reduces labour demand, and thus creates unemployment. Secondly, as firms substitute capital for labour, the marginal product of capital falls; over long periods of time, this in turn diminishes the incentive to invest and to grow. The data strongly support this view. According to our estimates, the observed rise of 14 percentage points in labour tax rates between 1965 and 1995 in the EU could account for a rise in EU unemployment of roughly 4 percentage points, a reduction of the investment share of output of about 3 percentage points, and a growth slowdown of about 0.4 percentage points a year. [source] Unemployment and Search Externalities in a Model with Heterogeneous Jobs and WorkersECONOMICA, Issue 273 2002Pieter A. Gautier This paper presents a matching model with low, and high,skilled workers and simple and complex jobs. I show that the degree to which low,skilled workers are harmed by high,skilled workers who are willing to temporarily accept simple jobs depends on the relative productivity of high, and low,skilled workers on simple jobs and on the quit rate of high,skilled workers. Under certain conditions, low,skilled workers can benefit from job competition with high,skilled workers. Within this framework, some explanations for the high and persistent unemployment rates of lower educated workers in the 1990s are evaluated. [source] Household Unemployment and the Labour Supply of Married WomenECONOMICA, Issue 270 2001Paul Bingley A recent reform to the UK unemployment insurance (UI) system has reduced the duration of entitlement from 12 to six months. The UI and welfare systems interact in the UK in such a way that exhaustion of UI for married individuals has potentially large disincentive effects on the labour supply of spouses. A model of labour supply is estimated for married women allowing for endogenous unemployment durations of husbands and wives. We distinguish between transfer programme induced incentive effects; correlation between labour supply and wages within couples; complementarity between the leisure times of spouses; and a discouraged worker effect. [source] Unemployment, Government Spending and the Laffer Effect,FISCAL STUDIES, Issue 2 2010Ludger Linnemann E62 Abstract The paper studies the effects of income tax rate changes in a general equilibrium model with frictional unemployment. Laffer curve effects, by which a tax rate reduction may increase the level of government spending or its share in output, are shown to be possible under certain conditions. These are the presence of unemployment benefit payments, government budget balance through fiscal spending adjustment and limited quantitative importance of labour reallocation costs. Endogenous government spending acts as a fiscal accelerator if the fiscal burden of unemployment benefit payments is large, but reduces the employment effects of tax rate cuts if it is low. [source] Fiscal Transfers and Distributive Conflict in a Simple Endogenous Growth Model with UnemploymentGERMAN ECONOMIC REVIEW, Issue 1 2007Luigi Bonatti Capital,labor conflict; endogenous growth; politico-economic models; tax burden; welfare reforms Abstract. In the simplified formal treatment proposed in this paper, a decrease in a policy parameter , the ratio of total tax revenues to GDP , can monotonically increase long-term growth rate and may lead to a higher employment level. This notwithstanding, the paper shows that the redistributive implications of such a decrease may induce the wage earners to oppose it. As a consequence, policy-makers reflecting social preferences may undertake redistributive transfers generating persistent unemployment and lowering growth even if commitment technologies allowing them to follow preannounced tax policies were feasible. [source] Falling Labor Share and Rising Unemployment: Long,Run Consequences of Institutional Shocks?GERMAN ECONOMIC REVIEW, Issue 4 2002Norbert Berthold The literature on unemployment has mostly focused on labor market issues while the impact of capital formation is largely neglected. Job creation is often thought to be a matter of encouraging more employment on a given capital stock. In contrast, this paper explicitly deals with the long,run consequences of institutional shocks on capital formation and employment. It is shown that the usual tradeoff between employment and wages disappears in the long run. In line with an appropriation model, the estimated values for the long,run elasticities of substitution between capital and labor for Germany and France are substantially greater than one. [source] Unemployment, Growth, and Trade UnionsGROWTH AND CHANGE, Issue 1 2001Henri L. F. De Groot This paper develops a two-sector endogenous growth model with a dual labor market caused by the operation of trade unions. Trade unions strive for the extraction of rents from the growth generating imperfectly competitive primary sector. This union behavior results in a non-competitive wage differential between the primary and secondary (perfectly competitive) sector. How the relationship between growth and unemployment depends on the institutional details of the labor market is analyzed. In general, growth and unemployment are intimately related for two reasons. Unemployment affects the scale of operation of the economy and thereby the growth rate. Growth affects inter-temporal decisions of workers about where to allocate on the labor market once they are laid off, and thereby it affects equilibrium unemployment. [source] Unemployment and self-assessed health: evidence from panel dataHEALTH ECONOMICS, Issue 2 2009Petri Böckerman Abstract We examine the relationship between unemployment and self-assessed health using the European Community Household Panel for Finland over the period 1996,2001. Our results show that the event of becoming unemployed does not matter as such for self-assessed health. The health status of those that end up being unemployed is lower than that of the continually employed. Therefore, persons who have poor health are being selected for the pool of the unemployed. This explains why, in a cross-section, unemployment is associated with poor self-assessed health. All in all, the cross-sectional negative relationship between unemployment and self-assessed health is not found longitudinally. Copyright © 2008 John Wiley & Sons, Ltd. [source] Unemployment, the ,new economy' and EU economic performanceINDUSTRIAL RELATIONS JOURNAL, Issue 5 2002Steve Bradley [source] Relationship between sick leave, unemployment, disability, and health-related quality of life in patients with inflammatory bowel diseaseINFLAMMATORY BOWEL DISEASES, Issue 5 2006Tomm Bernklev BSc Background: The goal of this study was to determine the rate of work disability, unemployment, and sick leave in an unselected inflammatory bowel disease (IBD) cohort and to measure the effect of working status and disability on the patient's health-related quality of life (HRQOL). Materials and Methods: All eligible patients were clinically examined and interviewed at the 5-year follow-up visit. In addition, they completed the 2 HRQOL questionnaires, the Short Form-36 Health Survey (SF-36) and the Inflammatory Bowel Disease Questionnaire validated for use in Norway (N-IBDQ). Data regarding sick leave, unemployment, and disability pension (DP) also were collected. Results: All together, 495 patients were or had been in the workforce during the 5-year follow-up period since diagnosis. Forty-two patients (8.5%) were on DP compared with 8.8% in the background population. Women with Crohn's disease (CD) had the highest probability of receiving DP (24.6%). A total of 58 patients (11.7%) reported they were unemployed at 5 years. This was equally distributed between men and women but was more frequent in patients with ulcerative colitis. Sick leave for all causes was reported in 47% with ulcerative colitis and 53% with CD, whereas IBD-related sick leave was reported in 18% and 23%, respectively. A majority (75%) had been sick <4 weeks, and a relatively small number of patients (25%) contributed to a large number of the total sick leave days. Both unemployment and DP reduced HRQOL scores, but the most pronounced effect on HRQOL was found in patients reporting IBD-related sick leave, measured with SF-36 and N-IBDQ. The observed differences also were highly clinically significant. Multiple regression analysis confirmed that IBD-related sick leave was the independent variable with the strongest association to the observed reduction in HRQOL scores. Conclusions: Unemployment or sick leave is more common in IBD patients than in the Norwegian background population. The number of patients receiving DP is significantly increased in women with CD but not in the other patient groups. Unemployment, sick leave, and DP are related to the patient's HRQOL in a negative way, but this effect is most pronounced in patients reporting IBD-related sick leave. [source] Unemployment and liquidity constraintsJOURNAL OF APPLIED ECONOMETRICS, Issue 3 2007Vassilis A. Hajivassiliou We present a dynamic framework for the interaction between borrowing (liquidity) constraints and deviations of actual hours from desired hours, both measured by discrete-valued indicators, and estimate it as a system of dynamic binary and ordered probit models with panel data from the Panel Study of Income Dynamics. We analyze a household's propensity to be liquidity constrained by means of a dynamic binary probit model. We analyze qualitative aspects of the conditions of employment, namely whether the household head is involuntarily overemployed, voluntarily employed, or involuntarily underemployed or unemployed, by means of a dynamic ordered probit model. We focus on the possible interaction between the two types of constraints. We estimate these models jointly using maximum simulated likelihood, where we allow for individual random effects along with an autoregressive process for the general error term in each equation. A novel feature of our method is that it allows for the random effects to be correlated with regressors in a time-invariant fashion. Our results provide strong support for the basic theory of constrained behavior and the interaction between liquidity constraints and exogenous constraints on labor supply. Copyright © 2007 John Wiley & Sons, Ltd. [source] MINING: Prices Down, Unemployment UpAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 2 2009Article first published online: 7 APR 200 No abstract is available for this article. [source] Longitudinal relations between employment and depressive symptoms in low-income, suicidal African American womenJOURNAL OF CLINICAL PSYCHOLOGY, Issue 6 2007Nathan Mascaro Unemployment and depression are problematic at both individual and societal levels, and research suggests that the two phenomena are related. More thorough and longitudinal analyses, particularly ones within low-income minority populations, are needed to guide the development of programs to increase employment in persons with mental health problems. The current study aimed to specify the relations over time between depressive symptoms and employment status within a sample of 46 low-income African American women participating in an intervention study for intimate partner violence and suicidal behavior. Hierarchical logistic regression analysis indicated that baseline levels of depressive symptoms predicted employment status at the end of a 10-week intervention period, controlling for baseline employment status. Chi-square analysis and qualitative analyses of trends in depression scores showed that changes in employment status during the 10-week intervention period predicted 6-month and one-year follow-up levels of depressive symptoms. Results imply that, for women in the currently sampled population, depressive symptoms create vulnerability for job loss, but the ability to gain employment despite high levels of depressive symptoms is linked to lowered depression levels over the long term. Community programs assisting such women could therefore not just lower the vulnerability to job loss by treating depressive symptoms, but they could potentially lower long-term depression levels through interventions that enhance employability and motivation to pursue work. © 2007 Wiley Periodicals, Inc. J Clin Psychol. [source] Unemployment and aggression: the moderating role of self-awareness on the effect of unemployment on aggressionAGGRESSIVE BEHAVIOR, Issue 1 2008Peter Fischer Abstract In February 2005, the unemployment rate in Germany surpassed the 10% mark. Derived from the revised version of the frustration,aggression hypothesis [Berkowitz, 1989], the present studies investigated the association between unemployment and aggression, as well as the moderating role of the self in this context. Because previous research on unemployment and aggression has been plagued by the cause-and-effect issue, the present research employed both an experimental and a correlational field approach. Three studies revealed that participants who expected to be unemployed after their degree (Studies 1 and 3), or who were currently unemployed (Study 2), reported stronger aggressive inclinations than participants who expected not to be unemployed or who were not unemployed at the time of data collection. However, this aggression-eliciting effect of expected or real unemployment only occurred for participants with low self-awareness. Participants who could actualize their self prior to reporting on aggression were not differently affected by different expectations or states of unemployment. Aggr. Behav. 34:34,45, 2008. © 2007 Wiley-Liss, Inc. [source] Putting Moral Standards on the Map: The Construction of Unemployment and the Housing Problem in Turn-of-the-Century London1JOURNAL OF HISTORICAL SOCIOLOGY, Issue 2-3 2008MALCOLM MANSFIELD An analysis of the Booth survey in terms of the standard of life concept demonstrates the importance of the slum clearance problematic in bringing about the major rethink in policy thinking which ultimately led to the labour exchange project. The peculiar mobilisation patterns promoted by the labour exchange project reflect the difficulty or impossibility of delocalising industry or dock activity into the London suburbs. [source] Unemployment and Inflation Consequences of Unexpected Election ResultsJOURNAL OF MONEY, CREDIT AND BANKING, Issue 8 2007MICHAEL BERLEMANN rational partisan theory; political business cycles; election outcome uncertainty The empirical evidence toward rational partisan theory of business cycles is mixed and thus inconclusive. This is due to the enormous heterogeneity of the existing empirical studies. Only a few of these test explicitly for the central theoretical innovation that post-electoral blips in economic activity depend on the degree of the electoral surprise. Using polling data we present empirical evidence in favor of rational partisan theory for a panel of OECD countries. [source] TheConvergence of the Italian Regions and Unemployment: Theory and EvidenceJOURNAL OF REGIONAL SCIENCE, Issue 3 2002Gaetano Carmeci We explore the links between the halt of the convergence process of Italian regions at the beginning of the 1970s and the increase in regional unemployment dispersion. We consider a neoclassical exogenous growth model with an imperfect labor market and show that during the transitional dynamics the imperfections of the labor market negatively influence the output growth rate. In particular, the model implies that centralized bargaining is likely to set a national minimum wage that is too high with respect to the labor productivity of the less developed regions, resulting in a negative impact on their per capita output growth. We test the implications of the model on a regional panel data set using the GMM framework. Both our market distortion measure and the unemployment rate are found to significantly lower the growth rate of per capita output. [source] Unemployment, life satisfaction and retrospective errorJOURNAL OF THE ROYAL STATISTICAL SOCIETY: SERIES A (STATISTICS IN SOCIETY), Issue 1 2007Hendrik Jürges Summary., The paper compares current and 1-year retrospective data on unemployment in the German Socio-Economic Panel study. 13% of all unemployment spells are not reported 1 year later, and another 7% are misreported. The ratio of retrospective to current unemployment has increased in recent years and is related to salience of unemployment measures such as the loss of life satisfaction that is associated with unemployment. Individuals with weak labour force attachment, e.g. women with children or individuals who are close to retirement, have the greatest propensity to under-report unemployment retrospectively. The data are consistent with evidence on retrospective bias found by cognitive psychologists and survey methodologists. [source] The Geography of Opportunity and Unemployment: An Integrated Model of Residential Segregation and Spatial MismatchJOURNAL OF URBAN AFFAIRS, Issue 4 2005Michael Howell-Moroney Using National Longitudinal Survey of Youth (1979) data, I estimate a two-step model that separately models the effects of segregation and spatial mismatch. The first model predicts educational attainment as a function of exposure to residential segregation as a youth. The second model predicts unemployment probability as an adult as a function of educational attainment and spatial mismatch. The empirical results show that segregation does have discernable effects on educational attainment for blacks, but not for whites. I also find that spatial mismatch affects unemployment probability for blacks, but such an effect is hardly present for whites. A partial equilibrium analysis using predictions from the models shows that large changes in either segregation levels or the central city/suburban distribution of the black population would yield only moderate decreases in unemployment probability for the black population overall. Yet despite small predicted effects, these results should be viewed with caution because the general equilibrium effects of a large scale movement of blacks and whites across metropolitan space are largely impossible to predict with current data. [source] Unemployment and the Separation of Married CouplesKYKLOS INTERNATIONAL REVIEW OF SOCIAL SCIENCES, Issue 1 2001Kornelius Kraft This article analyzes whether unemployment has an effect on the splitting of a marital relationship. The study uses 40 000 observations on unemployment spells and marital status during the period from 1987 to 1996. Random effects probit and conditional likelihood logit models for panel data are applied. Using several control variables, it was confirmed that unemployment does actually lead to a higher probability of the separation of married couples. [source] Matching Inefficiencies, Regional Disparities, and UnemploymentLABOUR, Issue 3 2009Sanna-Mari Hynninen Our results suggest that there would be a substantial decline in aggregate unemployment if (i) all local labour offices operated with full efficiency or (ii) they shared the same structure of job seekers and vacant jobs as the most favourable office. In the former case an increase in hirings would lower the average unemployment rate by 2.4 percentage points. In the latter case the decrease would be 1.4 percentage points. Further, we find that fixed effects are positively correlated with both a more favourable structure and higher efficiency. This suggests that the fixed effects may capture some part of time-invariant features in the structure and inefficiency. Thus, the role of structural factors and inefficiency in regional unemployment disparities may be higher than estimated. [source] Immigration Policy, Equilibrium Unemployment, and Underinvestment in Human CapitalLABOUR, Issue 1 2009Christian Lumpe We analyse the impact of different immigration policies on human capital investment in a search-theoretic model. This class of models features unemployment and underinvestment in human capital. The underinvestment in human capital can be solved by combining immigration policy with appropriate education subsidies. Extending the model with respect to different skill groups allows to analyse the observed bimodal skilled immigration of the USA. [source] | ||||||||||||||||||||||||||||||||||||||||