The causes and consequences of long-term unemployment in Europe

Machin, Stephen ORCID: 0009-0004-8130-2701 and Manning, Alan ORCID: 0000-0002-7884-3580 (1998) The causes and consequences of long-term unemployment in Europe. CEPDP (400). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 0753012332

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Abstract

One of the most striking features of European labour markets is the high incidence of long-term unemployment. In this paper we review the literature on its causes and consequences. Our main conclusions are that: the rise in the incidence of long-term unemployment has been ''caused'' by a collapse of outflow rates at all durations of unemployment while the long-term unemployed do leave unemployment at a slower rate than the short-term unemployed, this has always been the case and their relative outflow rate has not fallen over time there is no evidence that, for a given level of unemployment, the incidence of long-term unemployment has been ratcheting up over time once one controls for heterogeneity of the unemployed, there is little evidence of outflow rates that decline over a spell of unemployment While these findings suggest that long-term unemployment is not a problem independent of unemployment itself, one should recognise that the experience of long-term unemployment is a horrid one for those unfortunate enough to experience it.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 1998 the authors
Divisions:	Centre for Economic Performance Economics
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Date Deposited:	31 Jul 2008 13:19
Last Modified:	25 Oct 2024 13:49
URI:	http://eprints.lse.ac.uk/id/eprint/20255

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