Europe's Unemployment Problem

Since 1974 Europe has been burdened with steadily persistent and increasing unemployment. This book, prepared under the auspices of the European Unemployment Program, uses a compact econometric model to identify the sources of the unemployment problem and to suggest remedies. Focusing on ten European countries, with a chapter on the United States for comparative perspective, the studies are unique in adopting a single theoretical model to guide empirical research. The common framework allows for sharply focused investigation and produces findings whose significance does not end at national boundaries. The indepth country studies are preceded by an overview that includes a detailed description of the theoretical model, a summary of findings, and policy recommendations and a chapter by Olivier Blanchard that discusses different approaches to the analysis of the unemployment problem and relates this work to earlier efforts.