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The Political Consequences of Unemployment

Опубликовано на портале: 25-10-2004
Universitat Pompeu Fabra Working Papers. 1998.  No. 343.
Тематический раздел:
Author analyzes 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. He not only discusses labour market reform but other important aspects of policy making such as the size and structure of government spending. The class of mechanisms that is highlighted 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 can be seen mostly in France.

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