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Essay Details:
Essay text:
For the NAIRU explanation, wage push variables are key in explaining
the rise of European unemployment, for a Keynesian approach it is capital accumulation
that is key. The theories are tested using time series data for Germany, France, Italy, the
UK and the USA, using the seemingly unrelated regression method (SUR). Unemployment
benefits, union density and the tax wedge are used as wage push variables, and the
growth of business capital stock as the accumulation variable. The NAIRU specification
performs poorly, with only the tax wedge having a positive effect on unemployment as
predicted and only unemployment benefits having a negative effect on employment growth...
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Common topics in this essay:
- Behavioral Testing To Gain Employment
- Employment testing
- Environmental policy in the European Union
- Explaining European Unemployment: Testing the NAIRU Hypothesis and a Keynesian Approach
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