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European Unemployment Dilemma (1998)
| Venue: | Journal of Political Economy |
| Citations: | 403 - 18 self |
BibTeX
@ARTICLE{Ljungqvist98europeanunemployment,
author = {Lars Ljungqvist and Thomas J. Sargent},
title = {European Unemployment Dilemma},
journal = {Journal of Political Economy},
year = {1998},
pages = {514--550}
}
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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 1980's. We impute the higher unemployment towelfare 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 where workers accumulate skills on the job and lose skills during unemployment. Ljungqvist: Stockholm School of Economics and Federal Reserve Bank of Chicago; Sargent: Hoover Institution, Stanford, and University of Chicago. We thank George Akerlof, Sherwin Rosen, Jose Scheinkman, two anonymous referees and seminar participants at various institutions for criticisms and suggestions. We are grateful to Cristina De Nardi, Juha Seppala and Christopher Sleet for excellent research assistance. The views expressed here are ours and not necessarily those of the Federal Reserve System. Sargent's research
Keyphrases
european unemployment dilemma hoover institution anonymous referee christopher sleet general equilibrium search model sherwin rosen low unemployment excellent research assistance seminar participant service industry federal reserve system juha seppala jose scheinkman george akerlof ongoing restructuring unemployment towelfare state new information technology several decade high unemployment federal reserve bank turbulent economic time cristina de nardi various institution stockholm school international economy
