Paper #343

Título:

The political consequences of unemployment

Autor:

Gilles Saint Paul

Fecha:

Noviembre 1998

Resumen:

We analyze the channels by which an ill-functioning labor market changes the preferences of the people for public policy and therefore the decisions that are made. We not only discuss labour market reform but other important aspects of policy making such as the size and structure of government spending. The class of mechanisms that we highlight can be summarized as the very existence of unemployment generating political support for "sclerosis". This may help to explain the timid pace of reform, in particular the fact that any recovery sends them at the backfront of the political agenda, and the sometimes violent opposition generated by some measures, as we have seen mostly in France.

Palabras clave:

Unemployment, rigidities, employment protection, political economy, european labour markets

Códigos JEL:

E6, E24, J3, J6

Área de investigación:

Macroeconomía y Economía Internacional

Publicado en:

Swedish Economic Policy Review, 5, 2, 1998, pp. 259-296

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