Bernhard Ebbinghaus
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780199286119
- eISBN:
- 9780191604089
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199286116.003.0004
- Subject:
- Political Science, Comparative Politics
The chapter analyzes the main trends and cross-national variations in early exit from work for eight European countries, Japan, and the USA. Participation levels and employment rates of older workers ...
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The chapter analyzes the main trends and cross-national variations in early exit from work for eight European countries, Japan, and the USA. Participation levels and employment rates of older workers between age 55 and 64 have declined. Cohort-adjusted early exit rates for both men and women show not only a rise in early retirement over the 1970s and early 1980s, but also substantial cross-national differences. Early exit from work is widespread in Continental Europe, less so in Scandinavia, Anglophone market economies, and in Japan.Less
The chapter analyzes the main trends and cross-national variations in early exit from work for eight European countries, Japan, and the USA. Participation levels and employment rates of older workers between age 55 and 64 have declined. Cohort-adjusted early exit rates for both men and women show not only a rise in early retirement over the 1970s and early 1980s, but also substantial cross-national differences. Early exit from work is widespread in Continental Europe, less so in Scandinavia, Anglophone market economies, and in Japan.
Ian Gazeley and Andrew Newell
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780199212668
- eISBN:
- 9780191712807
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199212668.003.0011
- Subject:
- Economics and Finance, Financial Economics
This chapter reviews the reasons why unemployment was so high in the 1920s and 1930s, so low in the 1950s and 1960s, why it rose to much higher levels in the 1980s, and why it seemed to fall after ...
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This chapter reviews the reasons why unemployment was so high in the 1920s and 1930s, so low in the 1950s and 1960s, why it rose to much higher levels in the 1980s, and why it seemed to fall after the mid-1990s. Section 10.2 discusses the measurement of unemployment and examines movements in the unemployment rate, in historical and international perspectives. Section 10.3 sketches a theoretical framework capable of elucidating the mechanisms via which international and domestic economic events impact upon unemployment, and places that model in its intellectual context. Section 10.4 discusses and analyses the changes in unemployment from 1918 to 2000. Finally, broad explanations for the passage of unemployment during the century are revisited.Less
This chapter reviews the reasons why unemployment was so high in the 1920s and 1930s, so low in the 1950s and 1960s, why it rose to much higher levels in the 1980s, and why it seemed to fall after the mid-1990s. Section 10.2 discusses the measurement of unemployment and examines movements in the unemployment rate, in historical and international perspectives. Section 10.3 sketches a theoretical framework capable of elucidating the mechanisms via which international and domestic economic events impact upon unemployment, and places that model in its intellectual context. Section 10.4 discusses and analyses the changes in unemployment from 1918 to 2000. Finally, broad explanations for the passage of unemployment during the century are revisited.
Roger E. A. Farmer
- Published in print:
- 2013
- Published Online:
- October 2017
- ISBN:
- 9780691155234
- eISBN:
- 9781400846450
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691155234.003.0008
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter examines the persistence of unemployment by drawing from John Maynard Keynes' two central ideas. The first idea is that any unemployment rate can persist as an equilibrium. The second is ...
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This chapter examines the persistence of unemployment by drawing from John Maynard Keynes' two central ideas. The first idea is that any unemployment rate can persist as an equilibrium. The second is that the unemployment rate that prevails is determined by animal spirits. The chapter introduces a three-equation monetary model termed “Farmer monetary model,” which replaces the New Keynesian Phillips curve with a belief function that describes how agents form expectations of future nominal income. The chapter builds and estimates the Farmer monetary model using U.S. data for the period from the first quarter of 1952 to the fourth quarter of 2007. It compares the Farmer monetary model to a New Keynesian model by computing the posterior odds ratio. It shows that the posterior odds favor the Farmer monetary model and concludes by discussing the implications of this finding for fiscal and monetary policy.Less
This chapter examines the persistence of unemployment by drawing from John Maynard Keynes' two central ideas. The first idea is that any unemployment rate can persist as an equilibrium. The second is that the unemployment rate that prevails is determined by animal spirits. The chapter introduces a three-equation monetary model termed “Farmer monetary model,” which replaces the New Keynesian Phillips curve with a belief function that describes how agents form expectations of future nominal income. The chapter builds and estimates the Farmer monetary model using U.S. data for the period from the first quarter of 1952 to the fourth quarter of 2007. It compares the Farmer monetary model to a New Keynesian model by computing the posterior odds ratio. It shows that the posterior odds favor the Farmer monetary model and concludes by discussing the implications of this finding for fiscal and monetary policy.
Edmund S. Phelps
- Published in print:
- 1990
- Published Online:
- November 2003
- ISBN:
- 9780198283331
- eISBN:
- 9780191596766
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198283334.001.0001
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This volume represents the publication of seven lectures––the first annual Arne Ryde Memorial lectures administered by the University of Lund––on what the author deems to be the seven leading schools ...
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This volume represents the publication of seven lectures––the first annual Arne Ryde Memorial lectures administered by the University of Lund––on what the author deems to be the seven leading schools of thought in contemporary macroeconomics. The result is a wide‐ranging appreciation of the richness of macro theory and a commentary on some of its more doubtful tenets by a scholar who has himself made contributions to all seven schools. The recurring motif is that actual economies are complicated and each school has its own important insights into them. The first four schools have in common that they regard monetary mechanisms as a key part of the engine determining the level of economic activity while the last three schools all adopt essentially non‐monetary perspectives. The first chapter considers at length the basis for Keynes's break from classical economics. The next chapter addresses the sister school called ‘monetarism’. Chapters on the New Classical school and the New Keynesian school follow. The supply side is the first stop in the non‐monetary realm and the related school, called ‘Real Business Cycle theory’, is the next. The last chapter looks at the early work of the structuralist school, which was at an early stage of development when these lectures were given.Less
This volume represents the publication of seven lectures––the first annual Arne Ryde Memorial lectures administered by the University of Lund––on what the author deems to be the seven leading schools of thought in contemporary macroeconomics. The result is a wide‐ranging appreciation of the richness of macro theory and a commentary on some of its more doubtful tenets by a scholar who has himself made contributions to all seven schools. The recurring motif is that actual economies are complicated and each school has its own important insights into them. The first four schools have in common that they regard monetary mechanisms as a key part of the engine determining the level of economic activity while the last three schools all adopt essentially non‐monetary perspectives. The first chapter considers at length the basis for Keynes's break from classical economics. The next chapter addresses the sister school called ‘monetarism’. Chapters on the New Classical school and the New Keynesian school follow. The supply side is the first stop in the non‐monetary realm and the related school, called ‘Real Business Cycle theory’, is the next. The last chapter looks at the early work of the structuralist school, which was at an early stage of development when these lectures were given.
Hanaa Kheir-El-Din
- Published in print:
- 2008
- Published Online:
- September 2011
- ISBN:
- 9789774161544
- eISBN:
- 9781617970306
- Item type:
- chapter
- Publisher:
- American University in Cairo Press
- DOI:
- 10.5743/cairo/9789774161544.003.0005
- Subject:
- Political Science, Political Economy
Using data from the recently released Egypt Labor Market Panel Survey (ELMPS) of 2006, this chapter shows that there has been a decline in both the relative and absolute size of unemployment in Egypt ...
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Using data from the recently released Egypt Labor Market Panel Survey (ELMPS) of 2006, this chapter shows that there has been a decline in both the relative and absolute size of unemployment in Egypt in the period from 1998 to 2006. This result is puzzling to many and understandably has been met with a degree of skepticism, if not outright rejection. It thus requires some detailed scrutiny and, if confirmed, some explication. The chapter presents detailed evidence in support of a declining rate and level of unemployment in Egypt, as well as supporting evidence on the process of labor market entry for youth. It also presents what is regarded as a credible explanation for these trends on the basis of demographic, institutional, and economic arguments.Less
Using data from the recently released Egypt Labor Market Panel Survey (ELMPS) of 2006, this chapter shows that there has been a decline in both the relative and absolute size of unemployment in Egypt in the period from 1998 to 2006. This result is puzzling to many and understandably has been met with a degree of skepticism, if not outright rejection. It thus requires some detailed scrutiny and, if confirmed, some explication. The chapter presents detailed evidence in support of a declining rate and level of unemployment in Egypt, as well as supporting evidence on the process of labor market entry for youth. It also presents what is regarded as a credible explanation for these trends on the basis of demographic, institutional, and economic arguments.
Stephen Ansolabehere, Marc Meredith, and Erik Snowberg
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691151458
- eISBN:
- 9781400840298
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691151458.003.0011
- Subject:
- Political Science, American Politics
This chapter focuses on the accuracy of citizens' estimates of facts about the general state of the economy and on the consequences of that information. It analyzes both the determinants and ...
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This chapter focuses on the accuracy of citizens' estimates of facts about the general state of the economy and on the consequences of that information. It analyzes both the determinants and political consequences of respondents' perceptions of the average price of gas and the unemployment rate in their home states. The chapter finds that individuals overestimate the unemployment rate and that substantial partisan differences also exist. In contrast, estimates of gas prices are on average reasonably accurate, with no partisan differences. These analyses also suggest that perceptions of unemployment, but not of gas prices, are implicated in changes in partisan identification.Less
This chapter focuses on the accuracy of citizens' estimates of facts about the general state of the economy and on the consequences of that information. It analyzes both the determinants and political consequences of respondents' perceptions of the average price of gas and the unemployment rate in their home states. The chapter finds that individuals overestimate the unemployment rate and that substantial partisan differences also exist. In contrast, estimates of gas prices are on average reasonably accurate, with no partisan differences. These analyses also suggest that perceptions of unemployment, but not of gas prices, are implicated in changes in partisan identification.
Vladislav Flek, Martin Hála, and Martina Mysíková
- Published in print:
- 2018
- Published Online:
- January 2019
- ISBN:
- 9780190864798
- eISBN:
- 9780190864828
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190864798.003.0007
- Subject:
- Social Work, Social Policy, Communities and Organizations
This chapter analyzes youth labor market dynamics, their structure, and their policy implications, focusing on selected European Union countries during the various stages of the Great Recession and ...
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This chapter analyzes youth labor market dynamics, their structure, and their policy implications, focusing on selected European Union countries during the various stages of the Great Recession and comparing flows between labor market statuses for young people (aged 16–34 years) with those for prime-age individuals (aged 35–54 years). The flow approach views labor market transitions as a state-dependent process, simultaneously involving all movements of individuals between employment, unemployment, and inactivity. The main result is that young workers are more likely to move between employment and unemployment in both directions. This is instructive for assessing the gap in the labor market prospects of the two age groups and particularly for understanding differences in the evolution of youth and prime-age unemployment rates. The socioeconomic determinants of transitions between employment and unemployment in both directions are estimated, with the aim of illustrating the depth of age-based labor market segmentation and marginalization.Less
This chapter analyzes youth labor market dynamics, their structure, and their policy implications, focusing on selected European Union countries during the various stages of the Great Recession and comparing flows between labor market statuses for young people (aged 16–34 years) with those for prime-age individuals (aged 35–54 years). The flow approach views labor market transitions as a state-dependent process, simultaneously involving all movements of individuals between employment, unemployment, and inactivity. The main result is that young workers are more likely to move between employment and unemployment in both directions. This is instructive for assessing the gap in the labor market prospects of the two age groups and particularly for understanding differences in the evolution of youth and prime-age unemployment rates. The socioeconomic determinants of transitions between employment and unemployment in both directions are estimated, with the aim of illustrating the depth of age-based labor market segmentation and marginalization.
Timo Teräsvirta, Dag Tjøstheim, and W. J. Granger
- Published in print:
- 2010
- Published Online:
- May 2011
- ISBN:
- 9780199587148
- eISBN:
- 9780191595387
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199587148.003.0002
- Subject:
- Economics and Finance, Econometrics
This chapter contains a number of examples of families of nonlinear models in economic theory. These include disequilibrium models that have been applied to modelling markets with rationing or sticky ...
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This chapter contains a number of examples of families of nonlinear models in economic theory. These include disequilibrium models that have been applied to modelling markets with rationing or sticky prices, and various labour market models that generate nonlinearities in employment or unemployment. Modelling exchange rates fluctuating within boundaries set by the central bank that define the so‐called target zone of the exchange rate is also discussed. Production theory, in which nonlinear models are common, constitutes the last example. For all of these four areas, examples of application of these models to time series or cross‐section data are described.Less
This chapter contains a number of examples of families of nonlinear models in economic theory. These include disequilibrium models that have been applied to modelling markets with rationing or sticky prices, and various labour market models that generate nonlinearities in employment or unemployment. Modelling exchange rates fluctuating within boundaries set by the central bank that define the so‐called target zone of the exchange rate is also discussed. Production theory, in which nonlinear models are common, constitutes the last example. For all of these four areas, examples of application of these models to time series or cross‐section data are described.
William T. Dickens
- Published in print:
- 2009
- Published Online:
- August 2013
- ISBN:
- 9780262013635
- eISBN:
- 9780262258784
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262013635.003.0006
- Subject:
- Economics and Finance, Econometrics
This chapter presents a new approach to estimating time variation in the non-accelerating inflation rate of unemployment (NAIRU). A major problem with Phillips curve-based estimates is that the ...
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This chapter presents a new approach to estimating time variation in the non-accelerating inflation rate of unemployment (NAIRU). A major problem with Phillips curve-based estimates is that the complicated relationship between inflation, its own lags, supply shocks, and unemployment and its lags makes it possible to explain any particular incidence of high or low inflation a number of different ways. This problem is the root cause of both the lack of robust results and the large confidence intervals around NAIRU estimates derived from Phillips curve estimates. The chapter explores an alternative source of information about time variation in the NAIRU. The first section provides a brief introduction to the literature on the Beveridge curve and on how it has shifted over time. The second section develops a theory linking shifts in the Beveridge curve to shifts in the NAIRU. The third section presents estimates of the Beveridge curve model developed in the second section. The fourth section presents estimates of a linearized version of the model using a Kalman filter. Estimates of a restricted version of the model suggest that the information from the Beveridge curve adds significantly to the explanatory power of the Phillips curve. Two commentaries on the preceding study are also provided at the end of the chapter.Less
This chapter presents a new approach to estimating time variation in the non-accelerating inflation rate of unemployment (NAIRU). A major problem with Phillips curve-based estimates is that the complicated relationship between inflation, its own lags, supply shocks, and unemployment and its lags makes it possible to explain any particular incidence of high or low inflation a number of different ways. This problem is the root cause of both the lack of robust results and the large confidence intervals around NAIRU estimates derived from Phillips curve estimates. The chapter explores an alternative source of information about time variation in the NAIRU. The first section provides a brief introduction to the literature on the Beveridge curve and on how it has shifted over time. The second section develops a theory linking shifts in the Beveridge curve to shifts in the NAIRU. The third section presents estimates of the Beveridge curve model developed in the second section. The fourth section presents estimates of a linearized version of the model using a Kalman filter. Estimates of a restricted version of the model suggest that the information from the Beveridge curve adds significantly to the explanatory power of the Phillips curve. Two commentaries on the preceding study are also provided at the end of the chapter.
Raj Kishore Panda
- Published in print:
- 2016
- Published Online:
- June 2016
- ISBN:
- 9780199464784
- eISBN:
- 9780199086801
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199464784.003.0004
- Subject:
- Economics and Finance, Development, Growth, and Environmental
The chapter examines different dimensions of rural unemployment and association of unemployment with poverty in rural Odisha. It measures the trends in wages of field labourers vis-à-vis wages of ...
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The chapter examines different dimensions of rural unemployment and association of unemployment with poverty in rural Odisha. It measures the trends in wages of field labourers vis-à-vis wages of other rural workers and the inter-district disparity in field labour wage rates in the state. The chapter discusses the options in public intervention for improving the conditions of agricultural labourers in the state. The findings reveal that the incidence of rural unemployment has increased in Odisha between 1999–2000 and 2009–10 and particularly unemployment under CDS measure (underemployment) is found more prominent in the state during the study period. Compared to the all-India average, the incidence as well as the intensity of unemployment remains higher in rural Odisha. Unemployment and poverty are found to be inversely related. Better-off regions reveal higher rates of unemployment with lower incidence of poverty while worse-off regions exhibit vice versa. Agricultural field labourers receive lower wages than other rural workers. The chapter finds that wage rates vary across districts and between genders. To improve the economic conditions of agricultural workers, the study makes suggestions for improving productivity in agriculture along with increased government intervention for providing basic needs to these vulnerable sections of the rural community.Less
The chapter examines different dimensions of rural unemployment and association of unemployment with poverty in rural Odisha. It measures the trends in wages of field labourers vis-à-vis wages of other rural workers and the inter-district disparity in field labour wage rates in the state. The chapter discusses the options in public intervention for improving the conditions of agricultural labourers in the state. The findings reveal that the incidence of rural unemployment has increased in Odisha between 1999–2000 and 2009–10 and particularly unemployment under CDS measure (underemployment) is found more prominent in the state during the study period. Compared to the all-India average, the incidence as well as the intensity of unemployment remains higher in rural Odisha. Unemployment and poverty are found to be inversely related. Better-off regions reveal higher rates of unemployment with lower incidence of poverty while worse-off regions exhibit vice versa. Agricultural field labourers receive lower wages than other rural workers. The chapter finds that wage rates vary across districts and between genders. To improve the economic conditions of agricultural workers, the study makes suggestions for improving productivity in agriculture along with increased government intervention for providing basic needs to these vulnerable sections of the rural community.
Laurence Ball
- Published in print:
- 2009
- Published Online:
- August 2013
- ISBN:
- 9780262013635
- eISBN:
- 9780262258784
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262013635.003.0015
- Subject:
- Economics and Finance, Econometrics
This chapter addresses two broad issues. The first is whether there is clear evidence of hysteresis effects. To put it differently, can we reject the hypothesis that the non-accelerating inflation ...
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This chapter addresses two broad issues. The first is whether there is clear evidence of hysteresis effects. To put it differently, can we reject the hypothesis that the non-accelerating inflation rate of unemployment (NAIRU), and hence the long-run behavior of unemployment, is independent of aggregate demand? It answers yes to this question and reviews past evidence on hysteresis and presents some new evidence. The second broad issue is the nature of hysteresis. Through what mechanisms do short-run unemployment movements influence the NAIRU? What determines the strength of these effects in different countries and time periods? What are the implications for monetary policy? Two commentaries on the preceding study are also provided at the end of the chapter.Less
This chapter addresses two broad issues. The first is whether there is clear evidence of hysteresis effects. To put it differently, can we reject the hypothesis that the non-accelerating inflation rate of unemployment (NAIRU), and hence the long-run behavior of unemployment, is independent of aggregate demand? It answers yes to this question and reviews past evidence on hysteresis and presents some new evidence. The second broad issue is the nature of hysteresis. Through what mechanisms do short-run unemployment movements influence the NAIRU? What determines the strength of these effects in different countries and time periods? What are the implications for monetary policy? Two commentaries on the preceding study are also provided at the end of the chapter.
Faten Sabry, Ignacio Franceschelli, and Drew Claxton
- Published in print:
- 2016
- Published Online:
- October 2016
- ISBN:
- 9780198785774
- eISBN:
- 9780191827594
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198785774.003.0028
- Subject:
- Economics and Finance, Financial Economics, Macro- and Monetary Economics
This chapter reviews several factors that impact mortgage default behavior; the expansive literature on the determinants of mortgage default, before and after the credit crisis; and the private and ...
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This chapter reviews several factors that impact mortgage default behavior; the expansive literature on the determinants of mortgage default, before and after the credit crisis; and the private and governmental responses to the crisis, such as loan modification programs for distressed borrowers and lenders. These factors include changes in housing prices, unemployment rates, loan and borrower characteristics, underwriting guidelines, moral hazard, securitization, and illiquidity, among others. The effectiveness and social costs of such programs and their impact on changing a borrower’s default behavior will continue to be controversial issues among academics and market participants. Trends in housing prices, interest rates, unemployment, and consumer leverage together with delinquency and foreclosure rates show improvements since the peak of the credit crisis but they are not back to pre-crisis rates. The debate over the causes of the mortgage defaults among academics and industry participants continues.Less
This chapter reviews several factors that impact mortgage default behavior; the expansive literature on the determinants of mortgage default, before and after the credit crisis; and the private and governmental responses to the crisis, such as loan modification programs for distressed borrowers and lenders. These factors include changes in housing prices, unemployment rates, loan and borrower characteristics, underwriting guidelines, moral hazard, securitization, and illiquidity, among others. The effectiveness and social costs of such programs and their impact on changing a borrower’s default behavior will continue to be controversial issues among academics and market participants. Trends in housing prices, interest rates, unemployment, and consumer leverage together with delinquency and foreclosure rates show improvements since the peak of the credit crisis but they are not back to pre-crisis rates. The debate over the causes of the mortgage defaults among academics and industry participants continues.
Robert Cherry and Robert Lerman
- Published in print:
- 2011
- Published Online:
- March 2016
- ISBN:
- 9780814717189
- eISBN:
- 9780814769904
- Item type:
- chapter
- Publisher:
- NYU Press
- DOI:
- 10.18574/nyu/9780814717189.003.0002
- Subject:
- Political Science, American Politics
This chapter determines the employment and wage benefits to working families from a high-employment economy and identifies its inadequacies. With the persistence of almost double-digit official ...
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This chapter determines the employment and wage benefits to working families from a high-employment economy and identifies its inadequacies. With the persistence of almost double-digit official unemployment rates, which are even higher for at-risk groups, particularly teenagers, it will be many years before the nation obtains a high-employment economy. Substantial employment shortfalls will continue for some time; however, the chapter focuses on the most prominent at-risk groups: teenagers, single mothers, and black men. It also explores the impact of the first six years of the 1990s economic boom in relation to the limitations of robust employment growth and what can be anticipated over the next few years.Less
This chapter determines the employment and wage benefits to working families from a high-employment economy and identifies its inadequacies. With the persistence of almost double-digit official unemployment rates, which are even higher for at-risk groups, particularly teenagers, it will be many years before the nation obtains a high-employment economy. Substantial employment shortfalls will continue for some time; however, the chapter focuses on the most prominent at-risk groups: teenagers, single mothers, and black men. It also explores the impact of the first six years of the 1990s economic boom in relation to the limitations of robust employment growth and what can be anticipated over the next few years.
Rohit Azad and C. Saratchand
- Published in print:
- 2015
- Published Online:
- September 2016
- ISBN:
- 9780199458950
- eISBN:
- 9780199086900
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199458950.003.0003
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Monetary policy has been under discussion both before and after Keynes’s General Theory. While he was sceptical of its efficacy, the current mainstream macroeconomic consensus accords it primacy in ...
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Monetary policy has been under discussion both before and after Keynes’s General Theory. While he was sceptical of its efficacy, the current mainstream macroeconomic consensus accords it primacy in the process of maintaining price and output stability. Moreover, between these two objectives, the former has been accorded primacy over the latter in the policy prescriptions of the mainstream macroeconomic consensus. To locate the rationale behind monetary policy, we have presented here a macrotheoretical survey of monetary policy ranging through Keynes, Monetarists, New Keynesians, and heterodox approaches. We argue that, unlike the heterodox interpretations of Keynes, the neoclassical synthesis or the current macroeconomic consensus have, at best, only partially developed Keynes’s theoretical insight as set out in Keynes’s General Theory.Less
Monetary policy has been under discussion both before and after Keynes’s General Theory. While he was sceptical of its efficacy, the current mainstream macroeconomic consensus accords it primacy in the process of maintaining price and output stability. Moreover, between these two objectives, the former has been accorded primacy over the latter in the policy prescriptions of the mainstream macroeconomic consensus. To locate the rationale behind monetary policy, we have presented here a macrotheoretical survey of monetary policy ranging through Keynes, Monetarists, New Keynesians, and heterodox approaches. We argue that, unlike the heterodox interpretations of Keynes, the neoclassical synthesis or the current macroeconomic consensus have, at best, only partially developed Keynes’s theoretical insight as set out in Keynes’s General Theory.
Cristina Solera
- Published in print:
- 2009
- Published Online:
- March 2012
- ISBN:
- 9781861349309
- eISBN:
- 9781447304319
- Item type:
- chapter
- Publisher:
- Policy Press
- DOI:
- 10.1332/policypress/9781861349309.003.0005
- Subject:
- Sociology, Gender and Sexuality
This chapter first looks at the entire observed work trajectory from first job up until the age of 35 in order to furnish a descriptive picture of how many and which women, in each cohort, have ...
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This chapter first looks at the entire observed work trajectory from first job up until the age of 35 in order to furnish a descriptive picture of how many and which women, in each cohort, have entered employment and experienced none, one, or several family-care breaks. It then focuses on specific transitions within the entire trajectory and, using the technique of event history analysis, examines their changing correlates. In other words, it examines transitions between employment and housework and the changing effects of a woman's education, labour market experience, occupational class, type of job (full time or part time), marital and childrearing histories, her mother's work experience, and the yearly unemployment rate of the region in which she lives. By running first a single additive model for all the four birth cohorts, and then separate models by cohort, the chapter also indirectly addresses the ‘compositional’ issue of the post-war increase in women's employment. The last section summarises and discusses the main findings.Less
This chapter first looks at the entire observed work trajectory from first job up until the age of 35 in order to furnish a descriptive picture of how many and which women, in each cohort, have entered employment and experienced none, one, or several family-care breaks. It then focuses on specific transitions within the entire trajectory and, using the technique of event history analysis, examines their changing correlates. In other words, it examines transitions between employment and housework and the changing effects of a woman's education, labour market experience, occupational class, type of job (full time or part time), marital and childrearing histories, her mother's work experience, and the yearly unemployment rate of the region in which she lives. By running first a single additive model for all the four birth cohorts, and then separate models by cohort, the chapter also indirectly addresses the ‘compositional’ issue of the post-war increase in women's employment. The last section summarises and discusses the main findings.
Hugo A. Hopenhayn
- Published in print:
- 2004
- Published Online:
- March 2013
- ISBN:
- 9780226322827
- eISBN:
- 9780226322858
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226322858.003.0010
- Subject:
- Law, Company and Commercial Law
Over the last few years, the debate on labor market reform has been at the center of economic policy debate in Argentina. This debate has been fueled by the sustained growth in the unemployment rate ...
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Over the last few years, the debate on labor market reform has been at the center of economic policy debate in Argentina. This debate has been fueled by the sustained growth in the unemployment rate observed during the decade. One of the major targets of the attack on labor market regulation has been high dismissal costs. Attempts to reduce dismissal costs for all existing jobs have faced strong opposition. As a compromise, and to stimulate job creation, employment promotion contracts for new jobs were introduced in 1995. These contracts were limited to a fixed term ranging from three months to two years. It is a standard view that the reform stimulated the creation of a large number of these temporary contracts, which currently dominate the flow of new jobs. However, there is now a growing concern about the volatility of these temporary jobs, referred to as junk contracts, and a predominant view that they tend to generate excessive turnover. This chapter studies the effect of this reform on job duration.Less
Over the last few years, the debate on labor market reform has been at the center of economic policy debate in Argentina. This debate has been fueled by the sustained growth in the unemployment rate observed during the decade. One of the major targets of the attack on labor market regulation has been high dismissal costs. Attempts to reduce dismissal costs for all existing jobs have faced strong opposition. As a compromise, and to stimulate job creation, employment promotion contracts for new jobs were introduced in 1995. These contracts were limited to a fixed term ranging from three months to two years. It is a standard view that the reform stimulated the creation of a large number of these temporary contracts, which currently dominate the flow of new jobs. However, there is now a growing concern about the volatility of these temporary jobs, referred to as junk contracts, and a predominant view that they tend to generate excessive turnover. This chapter studies the effect of this reform on job duration.
Michele Landis Dauber
- Published in print:
- 2012
- Published Online:
- January 2014
- ISBN:
- 9780226923482
- eISBN:
- 9780226923505
- Item type:
- book
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226923505.001.0001
- Subject:
- Law, Legal History
Even as unemployment rates soared during the Great Depression, FDR's relief and social security programs faced attacks in Congress and the courts on the legitimacy of federal aid to the growing ...
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Even as unemployment rates soared during the Great Depression, FDR's relief and social security programs faced attacks in Congress and the courts on the legitimacy of federal aid to the growing population of poor. In response, New Dealers pointed to a long tradition—dating back to 1790 and now largely forgotten—of federal aid to victims of disaster. This book recovers this crucial aspect of American history, tracing the roots of the modern American welfare state beyond the New Deal and the Progressive Era back to the earliest days of the republic, when relief was forthcoming for the victims of wars, fires, floods, hurricanes, and earthquakes. Drawing on a variety of materials, including newspapers, legal briefs, political speeches, the art and literature of the time, and letters from thousands of ordinary Americans, it shows that while this long history of government disaster relief has faded from our memory today, it was extremely well known to advocates for an expanded role for the national government in the 1930s, including the Social Security Act. Making this connection required framing the Great Depression as a disaster afflicting citizens though no fault of their own. Dauber argues that the disaster paradigm, though successful in defending the New Deal, would ultimately come back to haunt advocates for social welfare. By not making a more radical case for relief, proponents of the New Deal helped create the weak, uniquely American welfare state we have today.Less
Even as unemployment rates soared during the Great Depression, FDR's relief and social security programs faced attacks in Congress and the courts on the legitimacy of federal aid to the growing population of poor. In response, New Dealers pointed to a long tradition—dating back to 1790 and now largely forgotten—of federal aid to victims of disaster. This book recovers this crucial aspect of American history, tracing the roots of the modern American welfare state beyond the New Deal and the Progressive Era back to the earliest days of the republic, when relief was forthcoming for the victims of wars, fires, floods, hurricanes, and earthquakes. Drawing on a variety of materials, including newspapers, legal briefs, political speeches, the art and literature of the time, and letters from thousands of ordinary Americans, it shows that while this long history of government disaster relief has faded from our memory today, it was extremely well known to advocates for an expanded role for the national government in the 1930s, including the Social Security Act. Making this connection required framing the Great Depression as a disaster afflicting citizens though no fault of their own. Dauber argues that the disaster paradigm, though successful in defending the New Deal, would ultimately come back to haunt advocates for social welfare. By not making a more radical case for relief, proponents of the New Deal helped create the weak, uniquely American welfare state we have today.
Cecil Mlatsheni and Murray Leibbrandt
- Published in print:
- 2014
- Published Online:
- March 2015
- ISBN:
- 9780199689248
- eISBN:
- 9780191789731
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199689248.003.0030
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Over the past 20 years the unemployment rate in South Africa has not fallen below 20% and stands at 25% in 2013. Racial inequality is also evident in unemployment. The unemployment rates of Africans ...
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Over the past 20 years the unemployment rate in South Africa has not fallen below 20% and stands at 25% in 2013. Racial inequality is also evident in unemployment. The unemployment rates of Africans in 1994 was 26%, it reached a peak of 37% in 2002 and was at 27% in 2007. In contrast, unemployment of whites consistently remained at 4% in 1994 and 2007, with a peak of 6% in 2002. This chapter analyses the reasons for high unemployment and measures to combat high unemployment.Less
Over the past 20 years the unemployment rate in South Africa has not fallen below 20% and stands at 25% in 2013. Racial inequality is also evident in unemployment. The unemployment rates of Africans in 1994 was 26%, it reached a peak of 37% in 2002 and was at 27% in 2007. In contrast, unemployment of whites consistently remained at 4% in 1994 and 2007, with a peak of 6% in 2002. This chapter analyses the reasons for high unemployment and measures to combat high unemployment.
Francesco Giavazzi and Michael McMahon
- Published in print:
- 2013
- Published Online:
- September 2013
- ISBN:
- 9780226018447
- eISBN:
- 9780226018584
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226018584.003.0004
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter examines how households respond to changes in a particular type of government spending: military contracts awarded by the Pentagon. Results show significant differences in the effects of ...
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This chapter examines how households respond to changes in a particular type of government spending: military contracts awarded by the Pentagon. Results show significant differences in the effects of government spending, depending on the state-specific unemployment rate. In states with relatively low unemployment, government spending could have insignificant or even negative effects on private consumption. In contrast, private consumption increases in high- unemployment states, suggesting that in such states, the multiplier is likely to be positive. Fiscal policy can have important distributional effects, since there is significant heterogeneity in households' responses to shifts in government spending. A commentary is also included at the end of the chapter.Less
This chapter examines how households respond to changes in a particular type of government spending: military contracts awarded by the Pentagon. Results show significant differences in the effects of government spending, depending on the state-specific unemployment rate. In states with relatively low unemployment, government spending could have insignificant or even negative effects on private consumption. In contrast, private consumption increases in high- unemployment states, suggesting that in such states, the multiplier is likely to be positive. Fiscal policy can have important distributional effects, since there is significant heterogeneity in households' responses to shifts in government spending. A commentary is also included at the end of the chapter.
Lynn S. Chancer, Martín Sánchez-Jankowski, and Christine Trost (eds)
- Published in print:
- 2018
- Published Online:
- November 2018
- ISBN:
- 9780190685898
- eISBN:
- 9780190685935
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190685898.001.0001
- Subject:
- Sociology, Occupations, Professions, and Work, Economic Sociology
This book confronts the persistent issues of youth unemployment and worsening socioeconomic precarity in the United States. While overall unemployment has declined, the unemployment rate remains ...
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This book confronts the persistent issues of youth unemployment and worsening socioeconomic precarity in the United States. While overall unemployment has declined, the unemployment rate remains nearly twice as high for young people 16–19 years of age and nearly three times as high for those aged 20–24. Millions of youth are neither in school nor working, and rates of unemployment and underemployment are nearly two to three times higher for black and Latino youth. Despite these glaring statistics, far more attention has been given to diminished social prospects facing young people in Europe than in America, and this is what makes this book so important. The volume’s Introduction places the issue in a global and national context, while suggesting a range of solutions and discussing the distinctive cultural ideology of the American dream as it intersects with young people's diverse experiences. Chapters in each of the book’s four sections explore structural and cultural causes of youth unemployment, their ramifications for both native and immigrant youth, and how both middle- and working-class youth across diverse races and ethnicities are affected within and outside the legal economy. Overall, the book insists that because the youth of today face greater insecurity than earlier generations, the time has come to address factors like technological changes, the rise of the 24/7 and “gig” economy, and the polarization between “good” and “bad” jobs; thus, the book features chapters on potential solutions including effective school-to-work models, shorter and shared hours, full employment, and basic income.Less
This book confronts the persistent issues of youth unemployment and worsening socioeconomic precarity in the United States. While overall unemployment has declined, the unemployment rate remains nearly twice as high for young people 16–19 years of age and nearly three times as high for those aged 20–24. Millions of youth are neither in school nor working, and rates of unemployment and underemployment are nearly two to three times higher for black and Latino youth. Despite these glaring statistics, far more attention has been given to diminished social prospects facing young people in Europe than in America, and this is what makes this book so important. The volume’s Introduction places the issue in a global and national context, while suggesting a range of solutions and discussing the distinctive cultural ideology of the American dream as it intersects with young people's diverse experiences. Chapters in each of the book’s four sections explore structural and cultural causes of youth unemployment, their ramifications for both native and immigrant youth, and how both middle- and working-class youth across diverse races and ethnicities are affected within and outside the legal economy. Overall, the book insists that because the youth of today face greater insecurity than earlier generations, the time has come to address factors like technological changes, the rise of the 24/7 and “gig” economy, and the polarization between “good” and “bad” jobs; thus, the book features chapters on potential solutions including effective school-to-work models, shorter and shared hours, full employment, and basic income.
