Upload
reginald-curtis
View
214
Download
1
Tags:
Embed Size (px)
Citation preview
Introduction
It is almost four years since the end of the Great Recession, yet global employment continues to be well below trend.
In the EU, there has been no recovery and indeed unemployment continues to rise, particular among the youth in the southern tier.
What are the explanations for the continuing unemployment problem in the EU?
Another (German) Economic Miracle?
Source: Rinne and Zimmermann, IZA Journal of Labor Policy 2012, 1:3
Change in Unemployment Rate vsChange in GDP Growth Rate, 2011-
2012
Difference in GDP Growth Rates
Red-EUBlue-non EU
“Scarring” Effects of Youth Unemployment
Boeri, OECD Policy Forum for Jobs for Youth, Oslo, Sept 20, 2011
Short term contract reform in Italy
Tealdi, “How Do Employment Contract Reforms Affect Welfare?,” 2011
Tealdi Conclusions
Tealdi, “How Do Employment Contract Reforms Affect Welfare?,” May 2011
Based on a quantitative Mortensen-Pissarides model before and after reform …
Summary of EU Unemployment Experience
Unlike the US, EU unemployment rates increased sharply after the Great Recession.
Increased unemployment has been born primarily by the young in the “financially distressed” countries.
These facts call into questions the efficacy of EU and IMF imposed “austerity” policies.
Still, rigid “two-tier” labor market structures also a major problem in need of reform.