Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70298
Authors: 
Hofer, Helmut
Pichelmann, Karl
Year of Publication: 
1999
Series/Report no.: 
Reihe Ökonomie / Economics Series, Institut für Höhere Studien (IHS) 76
Abstract: 
The paper attempts to establish a few stylised facts about Euroland's labour market given the increasing importance of smoothly functioning markets in the EMU. We assemble econometric evidence regarding labour demand behaviour, wage-setting mechanisms and the cyclicality of unemployment in Euroland. We find that in the 1990s unemployment cyclicality has been higher in Euroland than in the US, while the opposite was true in the previous two decades. The main reason for this is to be found in Euroland's employment now responding much stronger to cyclical fluctuations in output than in the past, and even somewhat stronger than in the US. Thus, it appears rather implausible that overall too strict employment protection regulations can still offer a convincing explanation for a significant part of Euroland's problem of persistently high unemployment. There can be little doubt, however, that wage-bargaining in Euroland continues to suffer from a serious insider-outsider problem.
Subjects: 
unemployment
wage-setting mechanisms
European Monetary Union
JEL: 
E24
J30
J64
Document Type: 
Working Paper

Files in This Item:
File
Size
279.09 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.