Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94797
Authors: 
Ljungqvist, Lars
Sargent, Thomas J.
Year of Publication: 
1997
Series/Report no.: 
IUI Working Paper 481
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 1980s. We impute the higher unemployment to welfare 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.
Subjects: 
Unemployment
Economic turbulence
Welfare state
Europe
JEL: 
E24
J64
Document Type: 
Working Paper

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