Understanding Unemployment in the Modern Economy: Institutions, markets and unemployment

Roger Bj├ rnstad

Published by VDM Verlag
ISBN 10: 3639156633 / ISBN 13: 9783639156638
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Synopsis: The level of unemployment varies considerably between countries. This book explains this by differences in their ability to neutralize economic shocks. The starting point is a review of the social and psychological literature in order to understand how joblessness affects people. The review shows that unemployed workers tend to reduce their search effort as time spent unemployed increases. The reason is that there are psychological costs attached to receiving rejections on job applications. So, if unemployment is allowed to rise, it may not come down again. Hence, counteracting negative shocks may have long lasting beneficial effects to the economy. However, the counteracting ability depends crucially on wage setting institutions. In this regard, decentralized regimes with generous welfare systems are the least favorable, and centralized regimes with the same generosity are the most favorable. Decentralized regimes with less generosity, as in the US and UK, lies somewhere in between. The last chapter in the book analyzes the consequences of decentralizing wage setting, both with and without a welfare reform.

About the Author: Roger Bj°rnstad, Dr. Polit in Economics from University of Oslo, Norway. Special research topics include labour market, wage formation, forecasting and econometrics. Worked at Norges Bank, Research Department. Currently Head of research, Macroeconomics, Statistics Norway, Oslo.

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Title: Understanding Unemployment in the Modern ...
Publisher: VDM Verlag
Binding: Paperback
Book Condition: GOOD

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Book Description Book Condition: New. Publisher/Verlag: VDM Verlag Dr. Müller | Institutions, markets and unemployment | The level of unemployment varies considerably between countries. This book explains this by differences in their ability to neutralize economic shocks. The starting point is a review of the social and psychological literature in order to understand how joblessness affects people. The review shows that unemployed workers tend to reduce their search effort as time spent unemployed increases. The reason is that there are psychological costs attached to receiving rejections on job applications. So, if unemployment is allowed to rise, it may not come down again. Hence, counteracting negative shocks may have long lasting beneficial effects to the economy. However, the counteracting ability depends crucially on wage setting institutions. In this regard, decentralized regimes with generous welfare systems are the least favorable, and centralized regimes with the same generosity are the most favorable. Decentralized regimes with less generosity, as in the US and UK, lies somewhere in between. The last chapter in the book analyzes the consequences of decentralizing wage setting, both with and without a welfare reform. | Format: Paperback | Language/Sprache: english | 262 gr | 192 pp. Bookseller Inventory # K9783639156638

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Book Description VDM Verlag Mai 2009, 2009. Taschenbuch. Book Condition: Neu. Neuware - The level of unemployment varies considerably between countries. This book explains this by differences in their ability to neutralize economic shocks. The starting point is a review of the social and psychological literature in order to understand how joblessness affects people. The review shows that unemployed workers tend to reduce their search effort as time spent unemployed increases. The reason is that there are psychological costs attached to receiving rejections on job applications. So, if unemployment is allowed to rise, it may not come down again. Hence, counteracting negative shocks may have long lasting beneficial effects to the economy. However, the counteracting ability depends crucially on wage setting institutions. In this regard, decentralized regimes with generous welfare systems are the least favorable, and centralized regimes with the same generosity are the most favorable. Decentralized regimes with less generosity, as in the US and UK, lies somewhere in between. The last chapter in the book analyzes the consequences of decentralizing wage setting, both with and without a welfare reform. 192 pp. Englisch. Bookseller Inventory # 9783639156638

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Book Description VDM Verlag Mai 2009, 2009. Taschenbuch. Book Condition: Neu. Neuware - The level of unemployment varies considerably between countries. This book explains this by differences in their ability to neutralize economic shocks. The starting point is a review of the social and psychological literature in order to understand how joblessness affects people. The review shows that unemployed workers tend to reduce their search effort as time spent unemployed increases. The reason is that there are psychological costs attached to receiving rejections on job applications. So, if unemployment is allowed to rise, it may not come down again. Hence, counteracting negative shocks may have long lasting beneficial effects to the economy. However, the counteracting ability depends crucially on wage setting institutions. In this regard, decentralized regimes with generous welfare systems are the least favorable, and centralized regimes with the same generosity are the most favorable. Decentralized regimes with less generosity, as in the US and UK, lies somewhere in between. The last chapter in the book analyzes the consequences of decentralizing wage setting, both with and without a welfare reform. 192 pp. Englisch. Bookseller Inventory # 9783639156638

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